Introduction to
Management, its
Functions, and
Organisations
CONTENTS
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History of Management
Management Theories and Schools of
Thought
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Key People
What is Management?
Management Functions
What do Managers do?
Management Roles
Management Skills
Managing Today
"People who ignore the past are
destined to relive it."
A person unaware of mistakes
made by others is likely to repeat
them.
Each generation of managers
needs to understand the lessons
learned by its predecessors and
build on them.
History of Management

Ancient History
 Early
Civilisations
 Egyptian
pyramids
History of Management

Modern History

Adam Smith publishes
The Wealth of Nations
• Division of Labour

Industrial Revolution
Managers needed skills to:
• Forecast demand
• Ensure that the necessary material
resources were available and on hand
for producing goods in question
• Assign tasks to people
• Ensure that machines were kept in
good working condition
• Find markets for the finished products
Management Theories and
Schools of Thought

MANAGEMENT THEORIES

Classical
• Scientific
• Administrative
Behavioural
 Quantitative
 System
 Quality

CLASSICAL MANAGEMENT THEORY
Classical Management Theory originated during the Industrial
Revolution. It has two branches – Classic Scientific and Classic
Administrative.
Classic Scientific School
Arose as a result of a need to increase productivity
The emphasis was to try to find the “one best way” of
getting work done by examining the way work was
accomplished
Focused on worker-machine relationships for increasing
production
Classic Administrative School
Grew out of a need for guidelines to manage the complex
organisations that emerged from the Industrial Revolution
The emphasis was on the development of managerial
principles rather than work methods
Advocated a belief in studying the flow of information
Theorists aimed at understanding how an organisation
operated
BEHAVIOURAL MANAGEMENT THEORY
Dealt with the human aspects of
organisations
Focused on employees as individuals,
resources, assets, and as part of work groups
Motivation and Leadership became topics of
great interest
Resulted in the creation of positions for
professionals as a Human Resources Manager
QUANTITATIVE MANAGEMENT THEORY
Was born in World War II era
Used mathematical and statistical approaches,
as well as computational models and simulations
for management problems
Used quantitative tools to help plan and control
nearly every aspect in the organisation
SYSTEMS MANAGEMENT THEORY
An organisation is viewed as a system, with inputs being
processed, through operations, into outputs. So a system is a set
of interrelated parts that work together to achieve stated goals.
Systems School
The systems school holds that an organisation comprises various
parts (subsystems) that must perform tasks necessary for the survival
and proper functioning of the system as a whole
The Functional Areas of business – Marketing, Finance, Human
Resource Management, etc. – are subsystems
Interrelatedness emphasises that a manager can’t change one
subsystem without affecting the rest
Cumulative Energy of Synergy
The whole is greater than the sum of its parts
Synergy is the increased effectiveness that results from combined
action or co-operation
It is sometimes described as 2 + 2 = 5 since the result of a
synergistic partnership is more than the sum production of each
partner alone
Synergy can lead to negative effects (clash of cultures, loss of jobs
(mergers & downsizing), antitrust and ethical issues, etc.)
QUALITY MANAGEMENT THEORY
Quality Management emphasises achieving customer satisfaction
by providing high quality goods and services
What is done must be measured and evaluated quantitatively
and qualitatively
Quality School is the most current and it is embraced worldwide
Kaizen
Japanese in origin (means continuous improvement for people,
products, and processes)
No matter how well things are going, the individual or
organisation can do it better
Reengineering
Change is constant; It will always occur
Is the fundamental rethinking and radical redesign of business
processes to achieve dramatic improvements
Key People
Frederick W. Taylor (1856-1915)
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Called the Father of Scientific
Management
Scientifically studied work to
identify the “one best way” to get
a job done (standardising tasks)
Scientifically selected, hired, and
trained workers
Motivated workers with financial
rewards (prorata)
Introduced work breaks
Key People
Henry Gantt (1861-1919)
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Developed the Gantt chart used for
scheduling multiple overlapping tasks over
a time period (still widely used in
organisations today for scheduling work)
Focused on motivational schemes,
emphasising the greater effectiveness of
rewards for good work
Developed a pay incentive system with a
guaranteed minimum wage and bonus
systems for people on fixed wages
Key People
Henri Fayol (1841-1925)
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Believed that management required
specific skills that could be learned
and taught
Designated management as a
universal set of functions that included
planning, organising, commanding, coordinating, and controlling
Described the practice of management
as something distinct from accounting,
finance, production, and the other
business functions
Developed several principles of
management
Key People
Mary Parker Follett (1868 - 1933)
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Focused on how organisations
cope with conflict
Emphasised the human element
in organisations and the need to
discover and enlist individual and
group motivation
Introduced three important
concepts:
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The Universal Goal
The Universal Principle
The Law of the Situation
Key People
Max Weber (1864-1920)
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Known as the Father of Modern
Sociology
Analysed bureaucracy as the
most logical and rational
structure for large organisations
A bureaucracy was a system
characterised by division of
labour, a clearly defined
hierarchy, detailed rules and
regulations, and impersonal
relationships
Key People
Chester Barnard (1886-1961)
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Saw organisations as social systems
requiring human co-operation
Argued that success depended on
maintaining good relations with external
groups and institutions
Developed the concepts of Strategic
Planning and Acceptance Theory of
Authority
Argued that managers must gain acceptance
for their authority
Believed that three top functions of the
executive were to:
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establish and maintain effective
communication system,
hire and retain effective personnel, and
motivate those personnel
Key People
Abraham Maslow (1908- 1970)
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Developed a needs-based
theory of motivation
(Hierarchy of Needs)
The theory is now considered
central to understanding
human motivation an
behaviour
Key People
W. Edwards Deming (1900- 1994)
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Father of Total Quality
Management
Regarded by the Japanese as
the key influence in their postwar
economic turnaround
Created constancy of purpose for
continual improvement of
products and services
What is Management?
Management
is the process of getting things done,
effectively and efficiently, through and
with other people.
(Robbins, DeCenzo, Stuart-Kotze,2002)
Efficiency & Effectiveness

Efficiency means doing a task
correctly.

Effectiveness is the attainment of a
goal.
Efficiency & Effectiveness
What is the difference exactly?

Efficiency is how you go about
accomplishing something (means),
while

Effectiveness is the attainment or
completion of a goal (ends).
Efficiency & Effectiveness

Example:
If you kill a fly with a hammer you may be
effective (ends - killing the fly). But you would
be much more efficient by using a fly swatter
(means – waste less energy, swat faster).
Management Functions
Management Functions are activities
that comprise the Management
Process.
 The four basic Management activities
are

Planning
 Organising
 Leading
 Controlling

Management Functions
Planning - involves defining an
organisation's goals, establishing an
overall strategy for achieving these
goals, and developing a set of plans to
integrate and co-ordinate activities.
 Setting goals keeps the work to be
done in proper focus and helps
organisation members keep their
attention on what is important.

Management Functions
Managers are also responsible for
designing an organisation's structure.
 Organising - involves determining
what jobs or tasks are to be done,
hiring and choosing who is going to do
them, and deciding how they will be
done.

Management Functions
Leading - is influencing other people
to get the job done.
 Leaders direct the activities of others,
motivate employees, maintain morale,
mold company culture, and manage
conflict and communication.

Management Functions
Controlling - is making sure that an
organisation's performance is up to par
with the goals previously set.
 A manager must continuously monitor
and compare actual performance with
set standards and take corrective
action when necessary.

What do Managers do?

A manager is someone who plans,
organises, leads, and controls people
and the work of an organisation with
the aim of ensuring that the
organisation achieves its goals
(Dessler, Tarke, Cyr, 2001)
Types of Manager

There are several ways to classify
managers. The three most common
classifications are by
Organisational Level
 Managerial Function
 Region or Divison

Management Roles

Interpersonal
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Informational
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Figurehead
Leader
Liaison
Monitor
Disseminator
Spokesperson
Decisional
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Entrepreneur
Disturbance Handler
Management skills

Technical
Conceptual
 Political
 Communication
 Interpersonal
 Effectiveness

Managing Today


Managers need to constantly monitor and anticipate
changes occurring in today’s volatile business
environment. Organisations are facing many new
challenges and forces in today’s more competitive
global marketplace.
Some of the most significant challenges and trends
include:
 Technological Innovations
 Globalisation
 A more Diverse Workforce
 Changing Political Systems
 Formation of new Trade Agreements/Areas
 Synergy