YARDSTICK INTERNATIONAL COLLEGE YIC ONLINE program 1 Management Theories and Practice Gebre Sorsa (PhD) 2 COPYRIGHT NOTICE THIS MOTION PICTURE IS PROTECTED UNDER INTERNATIONAL LAWS AND ITS UNAUTHORIZED DUPLICATION, EXHIBITION, DISTRIBUTION OR USE MAY RESULT IN CIVIL LIABILITIES AND CRIMINAL PROSECUTION, PEOPLE APPEARING IN THIS MOTION PICTURE HAVE GIVEN THEIR CONSENT AND DO SO TO YARDSTICK INTERNATIONAL PLC ONLY. Copyright © 2021 Yardstick International College 3 Contents of the course ● MANAGEMENT: AN OVERVIEW ● THE DEVELOPMENT OF MGT THOUGHT ● MANAGERIAL DECISION MAKING ● THE PLANNING FUNCTION OF MANAGEMENT ● THE ORGANIZING FUNCTION OF MANAGEMENT ● THE STAFFING FUNCTION OF MANAGEMENT ● THE DIRECTING FUNCTION OF MANAGEMENT ● THE CONTROLLING FUNCTION OF MANAGEMENT 4 Course Objective This course enables students to: ● Define the term management, basic concepts and principles of management. ● Explain the general overview of management in relation to its importance, roles, skills and universality ● Understanding the historical development of management thought. ● Acquire sound understanding of the nature and practice of management. ● Develop a comprehensive understanding of basic concepts of management functions. 5 CHAPTER ONE MANAGEMENT: AN OVERVIEW 6 Objectives ● ● ● ● ● ● ● This chapter is mainly concerned with giving answers to the following questions: What is management? Why is management important? Is management a science or an art? What Titles Do Managers Have? What do managers do? What Skills Do Managers Need? Are all management jobs the same? 7 Meaning And Definition Of Management ● Management refers to a group of people who are responsible for guiding and controlling the organization (Managerial personnel). ● Management is the process of running an organization (planning, organization, staffing, directing, and discipline). ● Management is a body of knowledge, a discipline ● Management is a factor of production, economic resource as land, labour and capital 8 What Is Management? Management is the ● art of getting things done through and with people in a formally organized group. ● art of knowing what you want to do in the best and cheapest way. ● art of securing maximum results with a minimum of efforts so as to secure maximum prosperity and happiness. ● utilization of scientifically derived principles to examine and improve collective efforts or production. ● Process of planning, organizing, staffing, directing & controlling the use of a firm's resources to effectively & efficiently attain its objectives. 9 Effectiveness and Efficiency Efficiency Effectiveness “Doing things right” “Doing the right things” • • Getting the most output for the Attaining organizational goals least inputs 10 QUESTION TIME What is the difference between Effectiveness and Efficiency? Which one is better? CREDITS: This presentation template was created by Slidesgo, including icons by Flaticon, infographics & images by Freepik 11 Why do the definitions of management differ? ● Management has various aspects. ● The theorists who had different areas of interest or training, defined management from their perspective (engineering, sociology, psychology, mathematics, etc) ● Management as a discipline is young and there is a lack of clarity of concepts and principles. 12 Who are managers? ● Persons in the position of authority who make decisions to commit (use) their resources and the resources of others towards the achievement of organizational objectives. ● They help other members of the organization and the organization itself to set and reach goals and objectives. ● The work of managers is, therefore, to make people productive. ● Everybody is the manager of his/her time, energy and talents. 13 How are Managers Different from Nonmanagerial Employees? ● Nonmanagerial Employees o People who work directly on a job or task and have no responsibility for overseeing the work of others. o ● Examples, associates, team members Managers o Individuals in organizations who direct the activities of others. 14 Where Do Managers Work? ● Organization o A deliberate arrangement of people brought together to accomplish a specific purpose. o Two or more persons engaged in a systematic effort to produce goods and/or services ● Common Characteristics: distinct purpose, deliberate structure, and people 15 Why is management important? ● Helps in setting objectives ● Optimum utilization of resources ● Keeps a close watch on changing technology being adopted in various fields. ● Make decisions scientifically ● To ensure the coordination of individual efforts. ● Effective Administration ● Social Obligation: quality products at reasonable price. ● Develop analytical and conceptual ability of managers ● It affects the accomplishment of social, economical, political organizational goal. 16 Is management a science or an art? ● Science: systematized knowledge derived from observation, study, and experimentation carried on in order to determine the nature and principles of the subject under study. ● Management is not as comprehensive or as exact as the other pure sciences. ● The reason is that the variables with w/c managers deal differ. Managers deal with the human elements and the behavior of human beings is unpredictable. 17 Is management a science or an art? ● Art: the application of knowledge and skills to accomplish results”. ● Art is grounded in the knowledge or principles developed by science. ● A manager uses the knowledge of management theory while performing his managerial functions. ● Management is an art b/c It is knowhow, it is the application of knowledge; and it is doing things in the light of the realities of the situation. 18 QUESTION TIME Is management a science or an art? Why? CREDITS: This presentation template was created by Slidesgo, including icons by Flaticon, infographics & images by Freepik 19 Is management a science or an art? ● Management principles are not developed for the sake of knowledge. But, their application for specific situation, ● Thus, in the art side of management managers make decisions and try to solve problems based on their intuition experience, instinct and personal insight. ● Management is therefore considered as both a science and an art. 20 What Titles Do Managers Have? ● Top Managers o Responsible for making decisions about the direction of the organization. o Individuals who are responsible for making organization-wide decisions and establishing plans and goals that affect the entire organization. o Examples; President, Chief Executive Officer, Vice-President 21 What Titles Do Managers Have? ● ● Middle Managers o Individuals who manage the work of first-line managers. o Manage the activities of other managers. o Examples; District Manager, Division Manager First-line Managers o Responsible for directing nonmanagerial employees o Examples; Supervisor, Team Leader 22 board of directors, executive committee and chief executive, or president, or general manger, etc divisional heads, department heads, section heads, plant managers, branch management, etc. the largest managerial group in most organizations 23 Top – level Management Functions ● Establishing broad objectives, designing major strategies & outlining Principal policies ● Providing effective organizational structure that insures integration ● Providing overall leadership and direction, & control of the organization ● Dealing with external parties such as the government, community, business, etc. by representing the organization, and ● Analyzing the changes in the external environment and respond to it. 24 Middle – level Management Functions ● Acting as intermediary between top and operating level management; ● Translating long-term plans of top management into medium range plans; ● Developing specific targets in their areas of reasonability; ● Developed specific schedules to guide actions and facilitate control; ● Coordinating inputs, productivity and outputs of operating level management 25 Operating – level Management Functions ● Plan daily and weekly activities based on the quarterly and yearly plans. ● Assign operating employees to specific tasks. ● Issue instructions at the workplace. ● Motivate subordinates to charge or improve their performance. ● Provide subordinates feedback about the ongoing performance. ● Take action to resolve performance problems. ● Identifying ways of improving communication among subordinates. 26 QUESTION TIME Managers who are responsible for making organization-wide decisions and establishing plans and goals that move the whole organization are_____ A. Line Managers B. Middle Level Managers CREDITS: This presentation template was created by C. Top Level Managers Slidesgo, including icons by Flaticon, infographics & images by Freepik D. Operating Level Managers E. All 27 Functional and General Managers ● Functional managers are managers appointed to supervise single operations which require specialized skills. ● E.g. Accountants, personnel, marketing and production managers ● General Managers are responsible for the overall operations of a more complex unit, such as company or division. ● General Managers usually coordinate two or more departments and hold functional managers accountable for their specialized areas. 28 What Roles Do Managers Play? ● Roles are specific actions or behaviors expected of a manager. ● They are an organized set of activities belonging to an identifiable job that give realism and systematize managerial functions. ● Henry Mintzberg observed that a manager’s job can be described by ten roles performed by managers in three general categories 29 Managerial Roles: Interpersonal ● Figurehead: ceremonial activities—showing the flag greeting visitors, signing legal documents, taking important customers to lunch, attending social functional involving their subordinates like wedding, funerals, ● Leader: influencing or directing others—translating authority into actual influence hiring, training, motivating and guiding ● Liaison: contacting others outside the formal chain of command—internal and external 30 Managerial Roles: Informational ● Monitor—seeking information to be aware of crucial developments ● Disseminator—receiving and sending information ● Spokesperson—representing the views of the unit for which the manager is responsible 31 Managerial Roles: Decisional ● Entrepreneur—exploring new opportunities ● Disturbance handler— seek solutions of various unanticipated problems such as strikes, complaints, grievances, shortage of materials etc. ● Resource allocator—deciding how resources will be distributed. allocate people, time, equipment, budget and other resources ● Negotiator—making accommodations with other units 32 What Skills Do Managers Need? ● A skill is an acquired and learned ability to translate knowledge into performance. ● It is an ability or proficiency in performing a particular task. ● Managerial skills are skills of a manageability of a manager to perform his duties and responsibilities expertly. ● Robert Katz and others describe four critical skills in managing 33 What Skills Do Managers Need? ● Conceptual Skills o Used to analyze complex situations. ability of a manager “to see” the big picture of the organization ● Interpersonal Skills o Used to communicate, motivate, mentor and delegate. the ability to work with other ● Technical Skills o Based on specialized knowledge required for work. the use of knowledge, methods and techniques o e.g. engineers, accountants, computer programmers 34 Skills Needed at Different Managerial Levels 35 QUESTION TIME The prime minister of Ethiopia has attended in Africa Union Meeting of 2021 to represent Ethiopians issues to the council. Which role does he played? A. Liaison Role B. Figurehead role CREDITS: This presentation template was created by C. Monitor roleby Flaticon, infographics & Slidesgo, including icons images by Freepik D. Negotiator role 36 Is The Manager’s Job Universal? The previous discussions describe management as a generic activity. In reality, a manager’s job varies with along several dimensions ● Level in the Organization o ● Profit vs. Nonprofit o ● Top level managers do more planning than supervisors Management performance is measured on different objectives Size of the Organization o Small businesses require an emphasis in the management role of spokesperson 37 Universal Need for Management 38 Factors that have contributed to the universal organization ● Managers perform the same functions irrespective of their level in the organization, industry or country. ● There are certain universally applicable principles: unity of command, division of work, limiting the number of persons to be supervised, the principle of motivation etc. ● The fundamentals governing the management of a business, a church or a university are the same. ● Management concepts are universal across organizational types. 39 What Do Managers Do? In the functions approach proposed by French industrialist Henri Fayol, all managers perform certain activities or functions 40 Four Management Functions ● ● Planning o Defining the organizational purpose and ways to achieve it o Maps out courses of action o Top-level management planning - Long –range planning o Lower level management planning – todays or tomorrow’s actions Organizing o ● Arranging and structuring work to accomplish organizational goals Staffing: o locating prospective employees to fill the jobs created by the organizing process. 41 QUESTION TIME Controlling functions Monitoring, comparing, and correcting work performance as the standards of ____functions A. Organizing B. Leading CREDITS: This presentation template was created by C. Planning Slidesgo, including icons by Flaticon, infographics & images by Freepik D. Staffing 42 Four Management Functions ● ● Leading o Directing the work activities of others o Motivating and encouraging employees Controlling o ● Monitoring, comparing, and correcting work performance Attempts to: o Prevent problems o Solve the problems that occur 43 Management Activities by Organizational level 44 Four Functions of Management 45 46 Terms to Know ● Manager ● Controlling ● First-Line Managers ● Management Roles ● Middle Managers ● Interpersonal Roles ● Top Managers ● Informational Roles ● Management ● Decisional Roles ● Efficiency ● Technical Skills ● Effectiveness ● Human Skills ● Planning ● Conceptual Skills ● Organizing ● Organization ● Leading ● Universality Of Management 47 QUESTION TIME What did you understood from this chapter about management? CREDITS: This presentation template was created by Slidesgo, including icons by Flaticon, infographics & images by Freepik 48 End of the chapter THANK YOU! 49