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CHAPTER 1

INTRODUCTION TO
MANAGEMENT
Every organization have their own objective and goals in
order to compete with existing and new organization in
industry.

Management activities will assists them to achieve these goals


and objectives.

Management comprises manager from various management


levels.
Managers are the most expensive basic resources in most
business. Organizations generally take several years to form
a strong management team.
How successful managers manage their organization can be
determined if the organization has achieved its goals and
objectives. This is because the achievement of an
organization depends on how effectively employees perform
their jobs. The effectiveness and efficiency of employees are
determined by how far managers control employee
behaviours in an organization.
1.1 Identify what managers do.
1.1.1 Define managers
Manager :
Most expensive basic resources in most businesses.

Because achievement of organization depend on how effective


employees perform their jobs.
Effectiveness and efficiency of employees are determined by
how far manager control employee behaviors in an organization
(Drucker, 1977)
Defined as individuals who are owners, founders or employees
in an organization.
They have power to make decision and utilize organizational
resources in the best way in order to achieve organizational
goals.
Are hired to influence, lead and train employees in an
organization.
1.1.2 Define management-Management is a set of
activities designed to manage certain task in order to
achieve organizational goals and objectives efficiently and
effectively through planning, organizing, leading and
controlling.
Or -Management is the process that plans, organizes,
leads and control the effort of employees and other
organizational resources to achieve various organizational
goals.
1.1.3 State the levels of management
1) First line managers
2) Middle line managers
3) Top line managers
First Line Managers
Positioned at the lowest level of the
management hierarchy.
Known as operational managers. E.g;
production supervisor or clerical supervisors
First line managers are responsible for the
duties of support staff
They located between top line managers and
the non-management staff.
Dont have power and authority in the
organizations.
Middle Line Managers
Fewer layer of middle management enable
middle line managers to have more autonomy
and responsibilities.

Able to perform their jobs more efficiently as


the level of bureaucracy reduces.

Responsible for the implementation of policies


and organizational plans by the top line
managers.
Top Line Managers
Positioned at the highest level in the
management hierarchy.
Responsible for overall management and
administration of the organization.
They develop organizational policies and
monitor the relationship between organization
and its environment.
Responsible to establish organizational goals,
objective and operational policies.
Top Line Managers
Known as Chief Executive Officers, Managing
Directors and Presidents.
They work together with middle management
in implementing organizational plans and
control over organizational operations.
Number of top line manager is very small
compare to middle line manager and first line
manager.
Planning : process of forming organizational
goals and objectives based on a logical plan.
Organizing: effort to coordinate activities
conducted by two or individuals in an
organization.
Leading: process of training employees on
how to perform their duties in the
organization.
Controlling: management effort to ensure
that the organization is moving towards
achieving its goals based on developed plans.
Category Role Activities
1. Interpersonal Figurehead- Refer Table 1.6 Ten
Leader- Managers roles
Public relation
officer-
2.Disseminating Observer-
information Disseminator of
information-
Spokesperson-
3. Decision making Entrepreneur-
Disturbance handler-
Resource allocator-
Negotiator-
1.2.1 The early management (3000BC-1776)
1.2.2 The Classical Approaches (1911-1947)
1.2.3 The Behavioral Approaches ( Late 1700s-
1950s)
1.2.4 The Quantitative Approaches (1940s-
1950s)
1.2.5 The contemporary Approaches (1960s-
present)
Field
of management start to emerge in early
twentieth century.

Management has evolved into three stages:


Early stage (before 1930)
Middle stage (1930-45)
Final stage (1945 to the present)
Management has been practiced a long time. Organized endeavors
directed by people responsible for planning, organizing, leading, and
controlling activities have existed for thousands of years. Lets look at
some of the most interesting examples.

The Egyptian pyramids and the Great Wall of China are proof that
projects of tremendous scope, employing tens of thousands of people, were
completed in ancient times.
It took more than 100,000 workers some 20 years to construct a
single pyramid. Who told each worker what to do? Who ensured that there would
be enough stones at the site to keep workers busy? The answer is managers.
Someone had to plan what was to be done, organize people and materials to do
it, make sure those workers got the work done, and impose some controls to
ensure that everything was done as planned.
Another example of early management can be found in the city of Venice, which
was a major economic and trade center in the 1400s. The Venetians developed an
early form of business enterprise and engaged in many activities common to todays
organizations. For instance, at the arsenal of Venice, warships were floated along
the
canals, and at each stop, materials and riggings were added to the ship.2 Sounds a
lot like a car floating along an assembly line, doesnt it? In addition, the Venetians
used warehouse and inventory systems to keep track of materials, human resource
management functions to manage the labor force (including wine breaks), and an
accounting system to keep track of revenues and costs.
Although weve seen how management has been used in organized efforts
since early history,the formal study of management didnt begin until
early in the twentieth century. These first studies of management, often
called the classical approach, emphasized rationalityand making
organizations and workers as efficient as possible.
Two major theories comprise the classical approach: scientific
management and general administrative theory. The two most important
contributors to scientific management theory were Frederick W. Taylor
and the husband-wife team of Frank and Lillian Gilbreth. The two most
important contributors to general administrative theory were Henri Fayol
and Max Weber.
Classical Approach
a) Scientific Management Theory
This approach emphasis on the importance of
conducting scientific studies on working
methods with the purpose of improving
employee efficiency.
a) Scientific Management Theory
i. Frederick W.Taylor (1856-1915)
Father of Scientific Management
Study on the relationship between employees and the
job designed
Suggested that job should be divided into smaller
elements in order to eliminate unnecessary work
movement.
Four basic principles to increase efficiency at
workplace:
- Conducting
- Selecting
- Allocating
- Implementing
a) Scientific Management Theory
ii. Frank Gilbreth (1868-1924)
Contributes towards time and motion study
It emphasis on reducing workflow to the most basic

work movements.
Objectives:

- determine time duration taken to complete the


particular task
- Identify better method to perform the task and
eliminate the unnecessary movements to avoid
wasting time and energy.
b) Classic Organization Theory
Emphasis on setting guidelines and methods to
manage complex organization.
i. Henri Fayol (1841-1925)
Discuss management as a process.
Known as Father of Modern Management
Five management functions:
I. Planning
II. Organizing
III. Commanding
IV. Coordinating
V. Controlling
1. Division of Work. Specialization increases output by making employees more
efficient.
2. Authority. Managers must be able to give orders, and authority gives them this
right.
3. Discipline. Employees must obey and respect the rules that govern the
organization.
4. Unity of command. Every employee should receive orders from only one
superior.
5. Unity of direction. The organization should have a single plan of action to guide
managers and workers.
6. Subordination of individual interests to the general interest. The interests of
any one employee or group of employees should not take precedence over the
interests of the organization as a whole.
7. Remuneration. Workers must be paid a fair wage for their services.
8. Centralization. This term refers to the degree to which subordinates are involved
in decision making.
9. Scalar chain. The line of authority from top management to the lowest ranks is
the scalar chain.
10. Order. People and materials should be in the right place at the right time.
11. Equity. Managers should be kind and fair to their subordinates.
12. Stability of tenure of personnel. Management should provide orderly personnel
planning
and ensure that replacements are available to fill vacancies.
13. Initiative. Employees who are allowed to originate and carry out plans will
exert high
levels of effort.
14. Esprit de corps. Promoting team spirit will build harmony and unity within the
organization.
b) Classic Organization Theory
ii. Max Weber (1864 1920)
Bureaucratic structure is most efficient organizational
structure because organizational goals and activities
are carefully and rationally viewed.
Characteristics of bureaucratic structure is:

I. Usage of rules and procedures


II. Not personal in nature
III. Clear management hierarchy
IV. Career development based on merits
V. Specialization of labour workforce
Bureaucracy administrative system based on 5
principles above.
Todays managers use the concepts of scientific management when they
analyze basic work tasks to be performed, use time-and-motion study to
eliminate wasted motions, hire the best qualified workers for a job, and
design incentive systems based on output. They use general administrative
theory when they perform the functions of management and structure their
organizations so that resources are used efficiently and effectively.
How todays managers use general administrative theory
Several of our current management ideas and practices can be directly
traced to the contributions of general administrative theory. For instance,
the functional view of the managers job can be attributed to Fayol. In
addition, his 14 principles serve as a frame of reference from which many
current management conceptssuch as managerial authority,
centralized decision making, reporting to only one boss, and so forth
have evolved.
Webers bureaucracy was an attempt to formulate an ideal prototype for
organizations.Although many characteristics of Webers bureaucracy are
still evident in large organizations,his model isnt as popular today as it
was in the twentieth century. Many managers feelthat a bureaucratic
structure hinders individual employees creativity and limits an
organizationsability to respond quickly to an increasingly dynamic
environment.
However, even in flexible organizations of creative professionalssuch as
Microsoft, Samsung, General Electric, or Cisco Systemssome
bureaucratic mechanisms are necessary to ensure that resources are used
efficiently and effectively.
As we know, managers get things done by working with people. This
explains why some writers have chosen to look at management by
focusing on the organizations people. The field of study that researches
the actions (behavior) of people at work is called organizational
behavior (OB). Much of what managers do today when managing people
motivating,leading, building trust, working with a team, managing
conflict, and so forthhas come out of OB research.
The early OB advocates (Robert Owen, Hugo Munsterberg, Mary Parker
Follett, and Chester Barnard) contributed various ideas, but all believed
that people were the most important asset of the organization and should
be managed accordingly.
The Hawthorne Studies dramatically affected management beliefs about
the role of people in organizations,leading to a new emphasis on the
human behavior factor in managing.
The Behavioral approach has largely shaped how todays organizations
are managed. Many current theories of motivation, leadership, group
behavior and development, and other behavioral issues can betraced to
the early OB advocates and the conclusions from the Hawthorne Studies.
1. Chester Bernard 1930s-actual manager who thought organizations were
social systems that require cooperation
Believe managers job was to communicate and stimulate employees
high levels of effort
First to argues that organizations were open system.
2. Robert Owens (late 1970s)-concern about deplorable working conditions.
Proposed idealistic workplace.Argued that money spent improving labor
was smart investment.
3. Mary Parker Follett (Early 1900s)- one of the first to recognize that
organizations could be viewed from perspective of individual and group
behaviour.
Proposed more people-oriented ideas that scientific management
followers.
Thought organizations should be based on group ethic.
4. Hugo Munsterberg (early 1900s)-pioneer in field of industrial psychology-
scientific study of people at work.
suggested using psychological tests for employee selection, learning
thery concepts for employee training and study of human behaviour for
employee motivation.
How todays managers use the behavioral approach
The behavioral approach has largely shaped how todays organizations are managed.
From the way that managers design jobs to the way that they work with employee
teams to the way that they communicate, we see elements of the behavioral
approach. Much of what the early OB advocates proposed and the conclusions from
the Hawthorne studies have provided the foundation for our current theories of
motivation, leadership, group behavior and development,and numerous other
behavioral approaches.
**refer page 33 -Hawthorne studies
The quantitative approach involves applications of statistics,
optimization models, information models, and computer simulations to
management activities. Todays managers use the quantitative approach,
especially when making decisions, as they plan and control work
activities such as allocating resources, improving quality, scheduling
work, or determining optimum inventory levels. Total quality
managementa management philosophy devoted to continual
improvement and responding to customer needs and expectationsalso
makes use of quantitative methods to meet its goals
Total quality management, or TQM, is a management philosophy devotedto
continual improvement and responding to customer needs and expectations.
The term customer includes anyone who interacts with the organizations
product or services internally or externally. It encompasses employees and
suppliers as well as the people who purchase the organizations goods or
services.
Continual improvement isnt possible without accurate measurements,which
require statistical techniques that measure every critical variable in
theorganizations work processes. These measurements are compared
against standards to identify and correct problems.
The quantitative approach involves applications of statistics,
optimization models, information models, and computer
simulations to management activities. Todays managers
use the quantitative approach, especially when making decisions,
as they plan and control work activities such as allocating
resources, improving quality, scheduling work, or determining
optimum inventory levels. Total quality managementa
management philosophy devoted to continual improvement and
responding to customer needs and expectations
also makes use of quantitative methods to meet its goals.
The quantitative approach contributes directly to management decision
making in the areas of planning and control. For instance, when
managers make budgeting, queuing, scheduling, quality control, and
similar decisions, they typically rely on quantitative techniques.
Specialized software has made the use of these techniques less
intimidating for managers, although many still feel anxious about using
them.
The systems approach says that an organization takes in inputs (resources)
from the environment and transforms or processes these resources into outputs
that are distributed into the environment. This approach provides a
framework to help managers understand how all the interdependent units
work together in order to achieve the organizations goals and that decisions
and actions taken in one organizational area will affect others. In this way,
managers can recognize that organizations are not self-contained, but instead
rely on their environment for essential inputs and as outlets to absorb their
outputs.
The contingency approach says that organizations are different, face different
situations, and require different ways of managing. It helps us understand
management because it stresses there are no simplistic or universal rules for
managers to follow.
Instead, managers must look at their situation and determine that if this is the
way my situation is, then this is the best way for me to manage.
Management is not (and cannot be) based on simplistic principles to
be applied in all situations. Different and changing situations require
managers to use different approaches and techniques. The
contingency approach (sometimescalled the situational approach)
says that organizations are different, face different situations
(contingencies), and require different ways of managing.

A good way to describe contingency is if, then. If this is the way my


situation is, then this is the best way for me to manage in this situation.
Its intuitively logical because organizations and even units within the
same organization differin size, goals, work activities, and the like. It
would be surprising to find universally applicable management rules that
would work in all situations. But, of course, its one thing to say that the
way to manage depends on the situation and another to say what the
situation is.
a) Contemporary / Current Approach
ii.Contingency / Current Theory
Every action taken by a manager must suit the
situation.
It is also known as situational theory.

Universal principles may not suitable to all situations.

Eg; autocratic leadership style not appropriate for all


situations.
Managers now may manage employees who are working from home or
working halfway around the world. An organizations computing resources
used to be mainframe computers locked away in temperature-controlled
rooms and only accessed by the experts. Now, practically everyone in an
organization is connectedwired or wirelesswith devices no larger than
the palm of the hand. Just like the impact of the Industrial Revolution in
the 1700s on the emergence of management, the information age has
brought dramatic changes that continue to influence the way
organizations are managed.
1.3.1 Describe how external environment affects managers
1.3.2 Describe how organizational culture affects managers

Discussion in group- refer page 46


ECONOMIC GLOBAL POLITICAL/LEGAL

DEMOGRAPHIC THE ORGANIZATION

TECHNOLOGICAL SOCIOCULTURAL
Were going to look at three ways the environment constrains and challenges
managersfirst, through its impact on jobs and employment; next, through the
environmental uncertainty that is present; and finally, through the various stakeholder
relationships that exist between an organization and its external constituencies.

1. JOBS AND EMPLOYMENT As any or all external environmental conditions (economic,

demographic, technological, globalization, etc.) change, one of the most powerful


constraintsmanagers face is the impact of such changes on jobs and employmentboth
in poor conditions and in good conditions. The power of this constraint became
painfully obvious during the recent global recession as millions of jobs were eliminated
and unemployment rates rose to levels not seen in many years. Economists now predict
that about a quarter of the 8.4 million jobs eliminated in the United States during this
most recent economic downturn wont be coming back and will instead be replaced by
other types of work in growing industries.14 Other countries face the same issues.
Although such readjustments arent bad in and of themselves, they do create
challenges for managers who must balance work demands and having enough of the
right types of people with the right skills to do the organizations work.
Not only do changes in external conditions affect the types of jobs that are
available,they affect how those jobs are created and managed. For instance, many
employers use flexible work arrangements to meet work output demand. For
instance, work tasks may be done by freelancers hired to work on an as-needed
basis or by temporary workers who work full-time but are not permanent employees
or by individuals who share jobs. Keep in mind that such responses have come about
because of the constraints from the external environment. As a manager, youll
need to recognize how these work arrangements affect the way you plan, organize,
lead, and control.

2.0 ASSESSING ENVIRONMENTAL UNCERTAINTY


Another constraint posed by external environments is the amount of
uncertainty found in that environment, which can affect organizational
outcomes. Environmental uncertainty refers to the degree of change and
complexity in an organizations environment. Refers to two aspects.
The first dimension of uncertainty is the degree of change. If the
components in an organizations environment change frequently, its a
dynamic environment. If change is minimal, its a stable one. A stable
environment might be one with no new competitors, few technological
breakthroughs by current competitors, little activity by pressure groups
to influence the organization, and so forth. For instance, Zippo
Manufacturing, best known for its Zippo lighters, faces a relatively stable
environment, with few competitors and little technological change. The
main external concern for the company is probably the declining numbers
of tobacco smokers, although the companys lighters have other uses and
global markets remain attractive. In contrast, the recorded music
industry faces a dynamic (highly uncertain and unpredictable)
environment. Digital formats and music-downloading sites turned the
industry upside down and brought high levels of uncertainty.
If change is predictable, is that considered dynamic? No. Think of
department stores that typically make one-quarter to one-third of their
sales in November and December. The drop-off from December to
January is significant. But because the change is predictable, the
environment isnt considered dynamic. When we talk about degree of
change, we mean change thats unpredictable. If change can be
accurately anticipated, its not an uncertainty for managers.
The other dimension of uncertainty describes the degree of
environmental complexity,which looks at the number of components in
an organizations environment and the extent ofthe knowledge that the
organization has about those components. An organization with fewer
competitors, customers, suppliers, government agencies, and so forth
faces a less complex and uncertain environment. Organizations deal with
environmental complexity in various ways. For example, Hasbro Toy
Company simplified its environment by acquiring many of its competitors.
3.0 MANAGING STAKEHOLDER RELATIONSHIPS
What makes MTV a popular cable channel for young adults year after year? One
factor is its success in building relationships with its various stakeholders:
viewers,music celebrities, advertisers, affiliate TV stations, public service groups,
and others.The nature of stakeholder relationships is another way in which the
environment influencesmanagers. The more obvious and secure these relationships,
the more influence managers will have over organizational outcomes.
Stakeholders are any constituencies in the organizations environment that are
affected by an organizations decisions and actions. These groups have a stake in or are
significantly influenced by what the organization does. In turn, these groups can
influence the organization. For example, think of the groups that might be affected by
the decisions and actions of Starbuckscoffee bean farmers, employees, specialty
coffee competitors, local communities, and so forth. Some of these stakeholders also,
in turn, may influence decisions and actions of Starbucks managers. The idea that
organizations have stakeholders is now widely accepted by both management
academics and practicing managers.
HOW ORGANIZATIONAL CULTURE AFFECT
MANAGERS
Organizational culture has been described as the shared values,
principles, traditions, and ways of doing things that influence the way
organizational members act. In most organizations, these shared values
and practices have evolved over time and determine, to a large extent,
how things are done around here.
Because an organizations culture constrains what they can and cannot do
and how they manage, its particularly relevant to managers. Such
constraints are rarely explicit. Theyre not written down. Its unlikely theyll
even be spoken. But theyre there, and all managers quickly learn what to
do and not do in their organization. For instance, you wont find the
following values written down, but each comes from a real organization.
Look busy even if youre not.
If you take risks and fail around here, youll pay dearly for it.
Before you make a decision, run it by your boss so that he or she is never
surprised.
We make our product only as good as the competition forces us to.
What made us successful in the past will make us successful in the
future.
If you want to get to the top here, you have to be a team player.
TOPIC 1:Elements of Management

Jun 2014
Question 1
(a) Define management intoduced by Certo (1997)(3m)
(b) Explain the responsibilities of managers that can be seen from their roles in three
important aspects:
(i) Functional manager
(ii) General manager
(iii) Project manager
(10m)
(c ) Describe 3 main levels in management system (6m)
(d) Explain 3 roles of managers in an organization.(6m)

Dis 2013
1 (a) Henri Fayol is known as the Father of modern Management. Explain FIVE (5) of
Henri Fayols Managemnt Principles. (15m)
2. According to Robert L.Kartz, managers are required to have THREE(3)
types of skills to perform their duties effectively. Discuss ALL the skills
(10m)

DIS 2012
1. Managers are individuals who are hired to influence, lead and train
employees in an organization.
(a) Briefly explain FIVE (5) management functions to Henri Fayol (10m)
(b) Successful managers can be determined from several qualities
demonstrated by them while performing managerial duties. Explain FIVE
(5) characteristics of successful managers in achieving organizational
goal with an appropriate examples.(15m)

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