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REG NO: BABA/07/D/004





Management theorists and practitioners have been attempting to define the term management for so many years. This therefore resulted into what is known as Evolution of management.

(a) Clearly

illustrate the meaning of management.

(b) All organization do exist because they are formed to achieve given purposes commonly known as organizational goals. So what do managers do in an organization?

(c) You have been appointed to a managerial position and your first task is to analyze and advice on how task should be performed, what managerial skills do you need to enable you do that task?

6. Discuss in detail the various functions of management. 3. Write notes on five of the following: Mission Strategy Project

Leadership Management Change.


(a) Ever since man started living in organized groups, the need for management was felt. It was management that enabled these groups to live in an orderly manner and arrange for the basic fulfillment of their needs. Without management, only hit and trial method would have helped man sustains his life. As mankind grew into civilization from mere groups, the touch of management continued to be felt. The ancient civilizations of Harappa, Mohanjodaro and Mesopotamia depicted the presence of management in their functioning. As the societies grew further, management started being practiced in all business and non-business organizations like Government, Churches, Temples and Hospitals etc. With the advent of Industrial th Revolution in 18 century, a new era of Industrialization came into existence. The use of both the machines and the labor force increased. Therefore the need for integrating the two arose and thus, the need for more comprehensive management was increasingly felt. With the further advancement in the arena of business, the business units became so large in size that all their financial requirements could not be met with through the owners themselves. Thus, the cooperate units started rising money from outside sources (through issues of shares debentures). Since the ownership became so diversified that it was not possible for the owner to manage the business, there arose the need for appointing managers to look after the affairs of the companies. There was thus, the separation of ownership and management and it became evident that people had to undergo formal education and training programmers to become successful managers. By the end of 19th century, management theory became to be recognized as a formal of managing the business enterprises. Much of the emphasis on developing management theories thus, grew out of industrial revolution which was characterized by the growth of factories and industrial units. The industrial houses brought together a number of people 3

who collectively coordinated their efforts towards increasing the industrial production and thought of new and innovative ways or running these business enterprises. The techniques that they applied to solve various organizational problems came to be reflected in various management theories. Management thought refers to the theories and principles that guide the management of people in organizations. Management theories are explanations of why a particular practice is effective or ineffective. Theories guide managers towards action and also analyze reasons for the success or failure of their actions. Managers having knowledge of management theories are more likely to predict the future environment and attain the organizational goals optimally. These theories developed initially out of the experiences of managers while they were actually practicing management. The management principles were thus, based on the practical experiences of managers. The management theories were developed by borrowing ideas from other fields of study like; Science, Anthropology, Sociology, Economics, Philosophy etc. Therefore by definition according to Henri Fayol: Management is to forecast, to plan, to organize, to command, to coordinate and control activities of others.

(b) Managers need to perform the following roles in order to achieve given organizational goals; Role of Managers The manager of the modern day times performs a complex task of unifying the labor and other resources so as to achieve the overall organizational goals. In this process, he has to deal with his superiors and subordinates and also with the factors affecting the external and the internal organizational environment. He has to make the best use of his position so that within the framework of managerial functions that he performs. He can so train his subordinates that organizational adaptability to environment increases and the organization is able to survive in this modern era of competition. The roles of managers differ from the functions of managers in that the functions describe what managers should do while the roles describe what they actually do. In 1973, Henry Mintzberg took up a study of the nature of managerial work. He studied the activities of five practicing chief executives and identified 10 (ten) basic roles categorized under three broad headings which the managers perform. These 4

roles are:

Interpersonal Roles Informational Roles Decisional Roles

1.0 Interpersonal Roles- The need for these roles arises because of the constant interaction that a manager has to be in with his superiors, peers, subordinates and the outside parties. Unless he is a role model to each one of these parties, he cannot be called a successful manager. The three main interpersonal roles are: Manager as the figurehead Manager as the leader Manager as the liaison 1.1 Manager as the figurehead The manager occupies an official position whereby he performs the duties of signing certain documents, making speeches, receiving official visitors and other duties of legal and social nature. 1.2 Manager as the leader The manager looks after the interests of his subordinates and also tries to solve their psychological and work-related problems. He lays down the goals for his followers, coordinates the individual goals with the organizational goals, motivates his followers to accomplish those goals and also create a feeling of enthusiasm, loyalty and confidence amongst them for the purpose of achieving the said goals. 1.3 Manager as the liaison The manager act as an integrating force for different groups (superiors and subordinates and people working at the same level) within the organization and for the organization with the outside world (such as society, consumers, government, trade unions etc.). 2.0 Informational roles Any organization to effectively achieve its goals, has to deal with people within and outside the organization. For this, the manager has to keep himself continuously informed about the activities and happenings in the internal and the external environment. In this context, the managers perform the following three roles: Managers as monitors Managers as disseminators Managers as spokespersons

2.1 Managers as monitors So that the managers keep themselves well informed of internal and external organizational environment, they have to monitor all the activities of the organization by reading various journals and periodicals and incase of any problems, solve it according to the situation. They have also to collect information about their environment through liaison work and conducting tours so that the organization works effectively within the overall environment of the economy. 2.2 Managers as disseminators The information that the managers collect as monitors has to be transmitted by them to other members of the organization. This is done through formal and informal interaction of managers with their subordinates; by holding meetings or circulating notices and circulars to them. 2.3 Managers as spokespersons The managers act as a link between their superiors and subordinates as also between the external and the internal organizational environment. The instructions and ordinances issued by superiors are passed on to their subordinates while the reactions and problems of subordinates are communicated to their superiors. Any change in the plans, policies and procedures of the organization is also intimated to the outside world. Thus a communication network is created by managers between the different sections of society (environment) and the organization. 3.0 Decisional roles After collecting the information from internal and external sources, the managers use this information for problem-solving in different situations. The main decisional roles performed by managers are: Managers as entrepreneurs Managers as disturbance handlers Managers as resource allocators Managers as negotiators 3.1 Managers as entrepreneurs The managers keep thinking of new ideas for the development of the organization. They try to implement these ideas within the given framework of resources. It may be required, at times, to bring certain changes in products, processes, technology etc. These changes, howsoever minor they may be, are not always easy to be made. It is possible for the managers to do so only through innovations. Business houses are the creations of man and are expected to continue for a long period of time. It is only as entrepreneurs that managers make an effort to ensure that the business which exists today continues to exist tomorrow and that successful businesses today continue to be successful even tomorrow or become even more successful. 6

3.2 Managers as disturbance handlers The managers try to solve the unexpected disturbances arising in and outside the organization by reviewing the situation and making proper strategies to solve them. There might be problems such as firing of employees by the superiors or demanding of a higher wage by the employees or facing of a tough situation with the customers or suppliers of materials which need the active role of a manager as a disturbance handler to solve them. 3.3 Manager as resource allocators The managers allocate the monetary and non-monetary resources to various departmental activities carried on by the organization, in the order of their priority so that the organizational goals can be achieved with utmost efficiency. 3.4 Managers as negotiators They mediate between the organization and the employees. In case of any conflict, they work in the interests of both organizations its work force so that the organizational goals are not at stake.

(c) As you are appointed to a managerial position, you need to perform the following task.Managerial skills - Technical, Human and Conceptual . Robert L. Katz, while he took up his work on Skills of an effective Administrator advocated that successful managers are those who possess the technical, human and conceptual skills, though their degree may vary from top level to lower levels down the organizational hierarchy. The need to exercise these skills in varying degrees, depending on the organizational levels, can be understood through the following:



Conceptu al Conceptu al Conceptu al

Top level Middle level Lower level





As we move down the organizational hierarchy, there is of technical skills required by the managers and less of conceptual skills. At higher levels, the need for analyzing the organization as a whole and coordinating the various organizational activities is more (conceptual skills) than possessing the technical skills to operationally perform a job. At the lower levels it is just the opposite. Human skill is equally important at all levels of organization. This is because managers at all levels have to deal with the work- force and unless they possess the required human skills, the workers would not effectively contribute to the overall organizational goals. 1. Conceptual skills - It is the mental ability of managers to co-ordinate and integrates the organizations interests and activities. It is the ability to foresee the opportunities that must be exploited so that the organization can make the best use of them and co-ordinate them with its internal system. It involves broad knowledge and imagination on the part of managers to use these skills so that the overall objectives and policies can be framed and also implemented effectively. Adding a new product in existing product line (in the national market), entering the international market and innovations are examples of application of the conceptual skills.

2. Human skills A manager is the one who performs the function of management. These functions have to be performed by managers at all the organizational levels. Managers at the top level pass orders to the workers through the middle and the lower level managers for achieving the organizational goals. Unless these orders or instructions are passed keeping in mind the abilities of the workers to actually carry them out, it will not be possible for the managers to gain the confidence of their subordinates. The knowledge and application of human and behavioral skills is therefore, very important for the managers to get the work done through their subordinates. Human skill is the ability to work with, understand and motivate other people, either as individuals or as groups.

3. Technical skill It is the ability to use the tools and techniques in area that a person is specialized in. It requires specialized knowledge to perform the work in that specialized area. These areas may be manufacturing operations, public administration, industrial management or business management.

Introduction to question number 6:


According to Terry and Franklin; management is a distinct process consisting of activities of planning, organizing, actuating and controlling, performed to determine and accomplish stated objectives with the use of human beings and other resources. Functions of management; Management has been defined as a process of getting things done through others. This process is identified in a set of functions performed by managers to accomplish the goals. Though different authors have different views on functions of management, following functions are generally performed by all the managers. Planning According to Terry and Franklin,planning is selecting information and making assumptions regarding the future to formulate the activities necessary to achieve organizational objectives. Planning involves selecting missions, objectives and the actions to achieve them. It requires decision-making i.e. choosing from among alternative future courses of action. Planning in simple terms is, thus, setting the targets and objectives to be achieved, devising ways and means to achieve them and selecting the best action to achieve the goals. Organizing Organizing is(1) the identification and classification of required objectives. (2) The grouping of activities necessary to attain objectives, (3)the assignment of each group to a manager with the authority necessary to supervise it (4)the provisions for co-ordination horizontally (at the same or a similar organizational level) and vertically (for example, cooperate headquarter, division and department) in the organization structure. According to Joseph L. Massie, Organization is the structure an process by which co-operative group of human beings allocates its tasks among its members, identifies relationships, and integrates its activities towards common objectives. Organization is, thus, a structure of line and staff relations whereby work is assigned from top level to lower levels along with the necessary authority and responsibility, creating an organizational chart, manual, climate and culture, for the purpose of achievement of organizational goals. Directing - Direction is telling people what to do and seeing that they do it to the best of their ability. It includes making assignments, corresponding procedures, seeing that mistakes are corrected, providing on-the-job instruction and, of course, issuing orders.

According to Urwick and Brech, directing is the guidance, the inspiration, the leadership of those men and women that constitutes the real core of responsibility of management. Directing is thus activating. It is bringing plans in to action by the process of motivation, communication, leadership, supervision and team building of all the organizational members. Staffing Staffing requires identifying human resource needs, filling the organizational structure and keeping it filled with competent people. According to Massie, the staffing function includes the process by which the right person is placed in the right organizational position. Staffing is, thus, a managerial function of hiring people and placing them in the right jobs as per their competence; training them and developing them so that they can strive for the accomplishment of goals of the organization. Staffing is, in fact, the pre-requisite to direction. Controlling - Control is the process that measures current performance and guides it towards some pre-determined goal. The essence of control lies in checking existing actions against some desired results determined in the planning process. Controlling is determining what is being accomplished, that is, evaluating the performance and, if necessary applying corrective measures so that the performance takes place according to plans. Controlling is, thus, ensuring that plans have been adhered to and in case of any discrepancy between the desired and the actual results, taking necessary action to correct the discrepancy.


Purpose/mission: The entire process of planning is directed towards setting goals and deciding about how best to attain them. To understand the concept of goals, one must know the terms: Purpose, and Mission

Purpose is a broader term that applies to all organizations of similar type operating in a society. The purpose of any educational institution, for example, is to provide quality education to society. Similarly, the purpose of a business organization is to provide quality goods and services to society at the right time and the right price. Mission: meaning, mission is a specific term that explains the organizations reason for existence. A mission statement is a broad declaration of the basic, unique purpose and scope of operations that distinguishes the organization from others of its type. The mission of an educational institution, for example may be to provide education to only women or for that matter, men. The mission of a business organization is to produce specific goods for the society. The mission of a Food Products Company may be to provide milk products to consumers located in a given geographical area. Mission defines the specific reason/purpose for the existence of an organization. Purposes of Mission It provides reason to an organizations existence. It furthers creativity and innovativeness on the part of organizational members. It helps outsiders (government, suppliers, creditors etc.) to develop an insight into the organizations internal functioning.

Components of mission statements A study revealed the following components of the mission statements (all or some): 11

1. Customers of the organization. 2. Products or services provided by the organization. 3. Location of the organization. 4. Technology adopted by the organization. 5. The organizations concern for survival i.e. its commitment to economic objectives. 6. The basic philosophy, beliefs, values and aspirations of the organization. 7. Self concept, i.e. the organizations strengths and competitive advantages. 8. Concern for public image i.e. organizations present and prospective responsibilities towards public. 9. Concern for employees by paying them adequate compensation according to their abilities, skills and contribution towards organizational operations.

(b) Strategy Strategy refers to a course of action. In the parlance of business organizations, it refers to the selection of a course of action out of the available courses in order to achieve the long-run goals through continuous and active interaction with the environment. Strategy gives direction to the organizational plans (to achieve its goals). It can also be defined as a means (way to achieve) to an end (the goal). In fact, some authors view strategies as both the setting of objectives and the means of achieving these objectives by making proper plans and policies. Others view it only as means towards the achievement of pre-stated goals. A strategy can be looked at from two different angles: (1) It deals with what an organization aims to do, and (2) It deals with what an organization actually does.


As per the first viewpoint, strategy has been defined as the broad program for defining and achieving an organizations objectives and implementing its mission. This view, thus, aims at setting the objectives/goals for the organizations and also preparing plans to achieve them. According to Koontz and Weihrich,Strategy refers to the determination of the purpose (or mission) and the basic long-term objectives of an enterprise and the adoption of courses of action and allocation of resources necessary to achieve these aims. The second viewpoint defines a strategy as, the pattern of the organizations' responses to its environment over time. The objectives, once framed, cannot remain static for all times to come. In the light of the changing circumstances, firms have to devise means to respond to environmental changes. Strategies, in this context have been defined as large-scale action plans for interacting with the environment in order to achieve long-term goals. Robinson and Pearce define a strategy as, large-scale future-oriented plans for competing in designated products and markets to achieve organization's objectives. According to Stoner and Wankel, A strategy creates a unified direction for the organization in terms of its many objectives, and it guides the deployment of the resources used to move the organization towards those objectives. While strategy is a comprehensive plan that accomplishes an organization's goals, effective strategies are those that promote a superior alignment between the organization and its environment and the achievement of strategic goals. The process of formulation of such a strategy where the organization is capable of competing with other competitors in the wake of changing environment is called as strategic planning. Features of a Strategy: In the light of above definitions, Robert H. Hayes and Steven C. Wheelwright highlight the following features of a strategy: (1) Time strategies are normally related to a long period of time. The discount the future and study its impact on the present organizational activities. (2) Impact The impact of strategies can be known only after a long period of time. The non-achievement of goals in the immediate future should not render the strategies ineffective. (3) Concentration of effort Since any organization works with limited amount of resources which have to be diverted to different types of activities, the managers must concentrate all their efforts towards framing those strategies which aim at optimum utilization of limited resources.


(4) Decisions The implementation of strategies require lot of decision making on the part of managers at different levels and in the different functional areas. Due care should be given to the fact that one decision does not negatively affect the other decision. (5) Pervasiveness Strategies prevail in all organizations, in all areas and at all levels. This requires effective coordination at each step so that consistency and smoothness are maintained in the organizational activities. (c) Project: A project is a discrete set of activities that must coordinate and be managed to achieve a specified objective. A project is time bound and is designed to deliver measurable benefits to a specified target group. Projects are the practical interventions at district level that are designed to link the policy and program objectives to the unique problems faced by a particular group of beneficiaries at the grass root level. The purpose of development projects is to solve the problems that are not solvable by existing means. However, experience over the past twenty years has indicated that the achievements of many development projects have not matched expectations. Recent analysis has identified the inappropriateness of many of the tools and methods used in project design and management. Many of these methods were borrowed from the private sector or from government departments where they had been specifically designed for those bodies and the particular management structures they use. (d) Leadership: We are all charged with one responsibility as managers, to achieve the bottom line. This means getting results, getting things done, moving the organization and ultimately giving a profit to the owners of the money we use. This is the primary role of managers. Leadership is the process of influencing people in the organization to make them achieve desired goals. Leadership is what essentially gets done in organizations. It is a guiding force, something that causes things to happen, something that shows the way forwards. Leadership is that very important function of manager that welds together the different and at times opposing forces of organizational members with a view to achieving organizational goals. It involves influencing people, directing them, inspiring them, commanding them, mobilizing them, guiding them and at times coercing them so that they can work towards the achievement of organizational goals.


Geneen and Moscow in their book define leadership as the ability to inspire other people to work together as a team following your lead in order to attain common objectives. Legendary management King, Peter Drucker, who rejects the idea of influence, calling it salesmanship says, it is the lifting of a mans vision to higher sights, the raising of a mans performance to a higher standard, the building of a mans personality beyond its normal limitation the turning of common men into uncommon men. And his Crown Prince, Thomas Peters along with his co-author of the famous In search of excellence(1982) Robert Waterman say it involves coalition building purposeful seeding of cabals, shifting the attention of the institution and altering the agendas so that new priorities receive attention, listening carefully, building a team of loyal followers and sometimes use of naked powers.


Reference Principles of management by Dr. Neeru Vasishth, 2nd Edition: Reprint 2007, published by: Taxman Allied Services (P.) Ltd.

Modern Business Administration sixth edition 1994 by Robert C. Appleby. Published by British Library cataloguing in publication data.

Business Administration fourth edition by Waswa Balunywa, BCOM, MBA 2006. Published by the Rising Sun Publishers.