KABUTU CHUUNGA ID UB16510SIN24221

PRINCIPLES OF MANAGEMENT

MANAGEMENT

ATLANTIC INTERNATIONAL UNIVERSITY. HONOLULU HAWAII SUMMER 11TH JANUARY, 2012

Table of contents 1 2 3 4 5 6 What is management Objectives of management Theories of management Management functions Conclusion References

1. What is management James L. Hayes (1975 p. 8) mentioned that management is getting things done. Management can also be said to be decision making. A person who performs management duties is a manager. Rashid Saeed (2011) mentioned that a manager is the person who manages, conducts, trains, manipulates, directs, deals, supervises, organizes and controls resources, expenditures, an organization, an institution, a team, a household, etc. The role and responsibilities of a manager Supervise all staff in an organization or department Manage the overall performance of an organization or department (daily duties). Analyzing, reporting, giving recommendations Developing strategies on how to improve quality and quantity. Achieve business and organization goals, visions and objectives. Involved in employee selection, career development, succession planning and periodic training. Working out compensations and rewards. Responsible for the growth and increase in the organizations' finances and earnings. Identifying problems, creating choices and providing alternatives courses of actions.

y y y y y y y y y

There are several definitions of management that many writers and researchers have come up with. The following are some of the common definitions of management that many managers and writers have used to define what management is. 1. Mary Parker Follet mentioned that "Management is the art of getting things done through others" 2. Henry Fayol mentioned that "To manage is to forecast and to plan, organize, to command, to co-ordinate and to control" 3. Louis Allen stated that "Management is what a manager does" 4. American Marketing Association, "Management is guiding human and physical resources into dynamic organizational units which attain their objectives to the satisfaction of those served within a high degree of moral and sense of attainment on the part of those rendering services" 5. Michael Nolty-CPA said "Management is the process of getting activities completed efficiently with and through other people" Rashid Saeed (2011 p. 1) mentioned that management is concerned with the coordination and overseeing the work activities of employees by the managers, so the activities are completed with efficiently and effectively. Rashid Saeed (2011 p. 1) mentioned that management is an organizational function, like sales, marketing or finance. As an organizational function it doesn't necessarily mean managing people. There are many things we can manage. If we could look at management in a wider view we could see that actually we are all managers. We manage

ourselves and anything assigned to us on a daily basis. At places of work we are given several tasks to accomplish. For examples if you are assigned a task that you manage very well on your own, this would mean you did the work in an efficient, well organized, making good of all resources at your disposal. Any organization has two tasks or goals to accomplish. These are delivering todays results profitably and create a future. For any business that exists, it is there to make a profit. In view of this, cost and service should be efficiently executed. To compete favorably, all businesses need some innovation. Rashid Saeed (2011 p. 2) mentioned that managers in these organizations need to foster innovation as well as efficiency. The best way to stimulate innovation is to encourage all employees to show leadership by promoting new products or services.

2. Objectives of management Managements goal is to ensure that things run smoothly in an organization. All the business processes and functions are run by managers. We can therefore say, the prosperity of an organization depends on management. The broad objectives of management are as follows: 1. Optimum utilization of resources: The main purpose of management is to use the resources an organization has in an economic and profitable manner. The resources of an organization include men, materials, machines and money. If management uses these resources efficiently the business of an organization will excel to higher levels. 2. Growth and development of business: A business can easily grow and develop if proper planning, organizing and directing are conducted. The duty of management is to lead a business to grow and develop. This leads to gaining profits which expand the business. When huge profits are gained and a business expands, the employers and employees will develop a sense of security. 3. Better quality goods: Quality of goods produced always attracts customers and leads to trustworthiness. Management should always strive to produce better products at a reduced cost so as to prevent all types of wastages in business. When wastages are prevented in an organization, profits will rise and the business will grow. 4. Mobilizing Best talents: The human resource of an organization is the most valuable resource an organization should look after. During the process of employing and hiring, experts in various fields should be sought. When skilled and talented men and women are employed in various fields, production and efficiency are enhanced. A proper environment of work should be developed so as to encourage good and skilled persons to join the firm. Salary scales should be increased to a standard that is acceptable by most of the employees and the community so as to give a good reputation to the prospective employees. 5. Improving performance: Management should look into all factors of production so as to be able to create a competitive platform of performance. Rashid Saeed (2011 p. 2) managements objective is to improve the performance of each and every factor of the production has the environment is made congenial so that workers are able to their maximum to

their enterprises. If all the factors of production are improved performance in an organization will be enhanced. 6. Planning for future: Management should plan for the future. The management should understand the present and develop a perspective plan. This plan will help the organization to meet the future changes in business and also the current operations so as to be able to meet tomorrows challenges. 7. Provide direction to the firm: It is the duty of management to provide direction for the firm. Management has to develop objectives that help the organization to move forward in a defined direction without swaying in one way or the other unless agreed by senior management. 8. Managing survival and growth: In business there are so many challenges. Many companies strive to bring new products to ensure that customers are attracted. It is also managements duty to ensure that a firm grows. When a firm grows customers will develop trust in it and employees will feel secured. 9. Maintaining firm efficiency in terms of profit generation: Managers are required to be efficient. By efficiency I mean the ratio of output a manager has need to not only produce results, but also be done in a cost effective manner possible. The more the manager produces from the same input, the greater the profit generated. According to Rashid Saeed (2011 p. 3) profit is the surplus or difference the manager can generate between the value of input and output. 10. Meeting the challenge of increasing competition: Competition is one of the greatest challenges most organizations face. For a firm to survive and remain on the market management should ensure that an attractive platform is created. 11. Managing for innovation: Rashid Saeed (2011 p. 3) mentioned that in the context of business, innovation has to be defined in term of the additional value. It impart to the existing or services. Value is not express in term of increased cost or price but in term of the difference it make to the customers. Successful firms innovate in response to market needs. Involved potential user in the development of innovation, and understand users need.

12. Building human organization: A hard and dedicated worker is a great and valuable asset to any company. It is therefore the duty of every manager to constantly be on the lookout for potential workers and have them attracted to the organization. Rashid Saeed (2011 p. 3) mentioned that a manager with a competent team has already won half the battle. A manager can attract people but as long as they are not properly coordinated together there will be no impact to the growth and development of the firm. For this reason, it is the duty of a manager to coordinate the people together in well organized teams. The failure of a manager to coordinate a team leads to unsuccessful results.

3. Theories of management Frederick Winslow Taylor Many writers and researchers have developed theories of management that have been used in many ways to explain and define ways of accomplishing tasks. Amongst these researchers and writers there is Frederick Winslow Taylor who discovered scientific management. He is said to be the father of scientific management. Scientific management is a systematic relationship of the people and tasks for the purpose of redesigning the work process for higher efficiency. Scientific management as defined by Frederick Taylor in the late 1800s to replace informal rule of thumb knowledge. Taylor sought to reduce the time a worker spent on each task by optimizing the way the task was done. It also defined differential piece rate system. Separating of planning and doing is also one of the components of scientific management. This theory states that planning is independent of doing and should be done separately. Finally Frederick Taylor in his theory of scientific management included functional foremanship. A functional foreman is a person in charge of a team performing a specific task. Scientific management has principles used to enhance efficiency and productivity. These principles as outlined by Frederick Taylor as follows: 1. Study the ways jobs are performed now and determine news ways to do them. The manager should always try as much as possible to find new ways that can be used to effectively accomplish duties that need more time. There should be efficiency at all times. 2. Codify the new methods into rules. When new rules are developed, all workers should be taught about the new rules so that they do them systematically as a team. 3. Select workers whose skills match the rules. The manager should place workers in positions that suit them. The rules set should be in line with the workers capability and skills. 4. Establish fair levels of performance and pay a premium for higher performance. When huge profits are raised from the business, workers should benefit as well for their higher performance. Scientific management had its own setbacks despite the outlined benefits above. These setbacks are follows: 1. Managers always use Frederick Taylors rules in the input process but do not share the huge profits by workers in the output process. 2. Specialized jobs became very boring and dull. 3. Machinery was highly used which purposely caused workers to underperform.

Henri Fayol There are other researchers like Henri Fayol who added value and thought to principles of management. Henri Fayol believed principles of management: 1. Division of labour 2. Authority and responsibility 3. Unity of command 4. Line of authority 5. Centralization 6. Unity of direction 7. Equity 8. Order 9. Initiative 10. Discipline 11. Remuneration personnel 12. Stability of tenure of personnel 13. Subordination of individual interest to the common interest 14. Esprit de corps Elton Mayo Elton Mayo who believed in work as a group activity is also one of the researchers on management. He believed that the social work of an adult is based on their work experiences. In his conclusion remarks on his research Elton Mayo stated that workers need recognition, security, and sense of belonging. Elton Mayo further concluded that a complaint is usually due to an employees dissatisfaction with his and her status. He said a workers attitude is shaped from forces inside and outside of the work environment. He further concluded that informal groups in the workplace improve employees attitudes and productivity. Elton Mayo added that the change from an established society at home to an adaptive society at work can create disturbances in the workforce. He said that group work must be planned and implemented. Other theories. There are other theories of management from researchers like Flank and Lillian Gilbreth and Douglas McGregor. Flank and Lillian Gilbreth believed in speed work, one best way, wage rates, modern motion study rates and created flow process charts. Douglas McGregor discovered Theory X and Theory Y. Figure 1 below shows the difference between the two theories.

Figure 1. Difference between Theory X and Theory Y

4. Management functions Managers exist in every business and do almost the same tasks and duties. It can be a tailoring company or motor vehicles sells but the duties are the same. Planning, organizing, leading and controlling; these four serve an important role for a manager to meet the daily demands of a business. A manager cannot succeed if one of these components is omitted. Planning The first component of management is planning. Planning involves the processes that create a workable scheme that ensures that all organizational needs are addressed. Kathy Schwalbe (2007 p. 80) mentioned that there are several plans, such as the scope management, schedule management plan, cost management plan, procurement management plan and so on, defining each knowledge area as it relates to the project at that point. Planning should involve the manager and all employees. They should plan on how they will define the work that needs to be done for the firm and how they will schedule all the activities related to the scope of work. The planning team should also look at the costs of performing the work and materials for the business. Below are different definitions of planning as written by different authors: "Planning involves developing a systematic process for attaining the goals of the organization...Leaders make change happen through planning instead of reacting to change" (EntEd 2007) "The development of the business plan greatly helps to clarify the organization's plans and ensure that key leaders are all 'on the same script.' Far more important than the plan document is the planning process itself" (McNamara 2007). According to Bernard L. Erven, planning focuses on the future impact of todays decisions. Without looking to the future, managers will not know the appropriate decision to make today. Organizing Rashid Saeed (2011 p. 7) mentioned that managers are responsible for organization of the company and this includes organizing people and resources. It is the duty of the manager to ensure that human resources are properly allocated. If employees are allocated to accomplish a task without tools to do the work, organizing has not occurred. Rashid Saeed (2011 p. 7) mentioned that without an organized workplace, employees will see a manager as unprepared and may lose respect for that particular managers supervisory techniques.

"Organizing brings together the nonhuman resources needed to achieve the project's objectives. To organize is to manage...It begins with the need to define requirements" (Richman 2006) Leading A manager is also a leader. Kathy Schwalbe (2007 p. 28) mentioned that a leader focuses on long term goals and big picture objectives, while inspiring people to reach those goals. Leaders work around the vision of the firm. As a leader a manager should motivate the people and communicate to them all what is involved for the organization to meet its vision and goal. The employees will follow the manager as he leads the organization. Rashid Saeed (2011 p. 7) mentioned that managers who want to lead effectively need to discover what motivates their employees and inspire them to reach the company objectives. Leading communicates the goals, purposes, procedures, and means to those who will do the work. Leading is the process of communicating the plan, whether orally or in writing (Richman 2006). Controlling Kathy Schwalbe (2007 p. 111) mentioned that monitoring and controlling is the process of measuring progress towards project objectives, monitoring deviation from the plan, and taking corrective action to match progress with the plan. It is also described in project management terms that, it involves determining variances from the approved plan, then taking action to correct those variances." (Richman 2006). According to Brech, Controlling is a systematic exercise which is called as a process of checking actual performance against the standards or plans with a view to ensure adequate progress and also recording such experience as is gained as a contribution to possible future needs. According to Donnell, Just as a navigator continually takes reading to ensure whether he is relative to a planned action, so should a business manager continually take reading to assure himself that his enterprise is on right course.

5. Conclusion Management is getting things done. It is important for everyone to understand that management is a role played by managers in all organizations. It involves planning, organizing, leading and controlling. Managements goal is to ensure that things run smoothly in an organization. All the business processes and functions are run by managers. We can therefore say, the prosperity of an organization depends on management. There are several theories of management that different researchers and writers have developed. All these show that management is a critical component each organization must take seriously.

6. References 1. James L. Hayes (1975) Modern Health Care, Crain Communications Inc. 2. Rashid Saeed (2011) Management functions, Bahauddin Zakariya University 3. Kathy Schwalbe (2007) Information Technology Project Management 5th Edition, Boston; Course Technology Cengage Learning. 4. Harold Koontz and Cyril O Donnel, Principles of management: An Analysis of Managerial functions 5. http://www.suite101.com/content/four-functions-of-managementa113463 6. http://en.articlesgratuits.com/management-skills-id1586.php 7. http://en.wikipedia.org/wiki/Interpersonal_skills 8. http://ezinearticles.com/?Managerial-Skills&id=1844375 9. http://www.managementstudyguide.com/organizing_function.htm