DBIT 1206
Business Organization and
Management
Introduction to
Management (I & II)
Learning Outcomes
By the end of the session, the students
should be able to:
1. Define management
2. Explain the nature, purpose and
functions of management
3. Describe the functions of management
4. Discuss management theories and their
evolution
Learning Activities
The students will:
1. Engage in class discussions
2. Form groups for group work (3-5 per
group)
3. Group Work Assignment 1 –
Management Theories
Key Terms
1. Management
2. Functions of Management
3. Management Theories
Introduction
One of the most important human activities
is managing.
Ever since people began forming groups to
accomplish aims they could not achieve as
individuals, managing has been essential to
ensure the coordination of individual
efforts.
Introduction
Society has come to rely increasingly on
group effort; as many organized groups
have become large, the task of managers
has been rising in importance.
The purpose of this module is to introduce
students to the nature of business
organizations, the business environment,
and the functions of the manager within the
organization.
Introduction
This module will provide fundamental
concepts about business, its organizational
structures and management. Thereby
building a solid business foundation by
preparing students to enter into the
business community.
Definition
Management is an art of getting things
done through and with people in formally
organized groups.
(Harold Koontz)
Definition
Implications of the definition:
1. Goal attainment – getting things done
2. Interpersonal skills – through and with
people (e.g. collaboration, influence,
cooperation)
3. Art – know how (creation of a conducive
environment for management to take
place). Management takes place in
formally organized groups
The Nature & Purpose of
Management
1. As managers, people carry out managerial functions.
2. Management applies to any kind of organization.
3. It applies to managers at all organizational levels.
4. The aim of all managers is the same: to create a surplus.
5. Managing is concerned with productivity, which implies
effectiveness and efficiency.
Productivity
Productivity is defined as the output-input
ratio within a time period with due
consideration for quality.
It is the rate of output per unit of output.
Functions of Managers
Managers just don't go out and haphazardly
perform their responsibilities. The functions
of managers provide a useful structure for
organizing management knowledge.
There have been no new ideas, research
findings, or techniques that cannot readily
be placed in the classifications of planning,
organizing, staffing, leading, and
controlling.
Functions of Managers
1. Planning – selecting missions and
objectives as well as the actions to
achieve them; it requires decisionmaking, which is, choosing future
courses of action from among
alternatives.
2. Organizing – establishing an intentional
structure of roles for people to fill an
organization.
Functions of Managers
3. Staffing – filling, and keeping filled, the
positions in the organization structure.
4. Leading – influencing people so that
they will contribute to organizational
and group goals.
5. Controlling – measuring and correcting
individual and organizational
performance to ensure that events
conform to plans.
Management
Examples of managers:
1. Dr.. Vincent Ogutu, VC of SU
2. Peter Ndegwa CEO of Safaricom
3. President William Ruto
4. County Governors
Qn: Is the Class Rep a manager? Is a Group
Leader a manager? Why or why not?
Evolution of Management
Thought
Many different contributions of writers and
practitioners have resulted in different
approaches to management, and these
make up a “management theory jungle.”
Management Theories
Theory – a theory is a group of linked ideas
intended to explain something.
A theory provides a framework for
explaining observations. The explanations
are based on assumptions.
From the assumptions follows a number of
possible hypotheses. They can be tested to
provide support for, or challenge, the
theory.
Management Theories
The Industrial Revolution is at the center of
management theory.
From the late 1700s through the early
1900s, the Industrial Revolution brought
extraordinary change to the workplace and
forever transformed the way companies
operate.
Management Theories
Factors leading to the Evolution of
Management Theories:
1. Power – diversity of sources
2. Innovations – machinery and
technological advances
3. Transportation – movement of
materials, goods, and people
Management Theories
The Management Theories were intended
to answer questions arising from the
Industrial Revolution:
1. How are we going to organize all this?
2. How are we going to maximize
productivity?
3. How are we going to manage all these
people?
Management Theories
1. Scientific Management Theory (Frederick
W. Taylor)
Management Theories
His primary concern was to raise
productivity through greater efficiency in
production and increased pay for workers,
by applying scientific methods.
His principles emphasize using science,
creating group harmony and cooperation,
achieving maximum output, and developing
workers.
Management Theories
2. Administrative Management Theory
(Henri Fayol)
Management Theories
Referred to as the father of modern
management theory.
Divided industrial activities into six groups:
technical, commercial, financial, security,
accounting, and managerial.
Recognized the need for teaching
management.
Formulated 14 principles of management.
Management Theories
3. Bureaucracy Theory (Max Weber)
Management Theories
Max Weber developed a theory of authority
structures in which he identified a form of
organization to which he gave the name
‘bureaucracy’.
Management Theories
Bureaucracy is defined as:
“Bureaucracy is an organizational structure
that is characterized by many rules,
standardized processes, procedures and
requirements, number of desks, meticulous
division of labor and responsibility, clear
hierarchies and professional, almost
impersonal interactions between
employees”.
Management Theories
The distinguishing features of a bureaucracy
were:
Management Theories
4. Behavioral Sciences Theory (Abraham
Maslow, Douglas McGregor, Elton Mayo)
This is often called the human relations
movement because it addresses the human
dimension of work. Behavioral theorists
believed that a better understanding of
human behavior at work, such as
motivation, conflict, expectations, and
group dynamics, improved productivity.
Management Theories
Management Theories
Management Theories
Elton Mayo – Hawthorne Experiment
Management Theories
5. Systems Management Theory
The systems management theory has had a
significant effect on management science.
This theory views organizations as a
complex system of people, tasks, and
technology.
A system is an interrelated set of elements
functioning as a whole.
Management Theories
An organization as a system is composed of
four elements:
a) Inputs — material or human resources
b) Transformation processes — technological and
managerial processes
c) Outputs — products or services
d) Feedback — reactions from the environment
Management Theories
Management Theories
6. Contingency Management Theory
This theory can be summarized as an “it all
depends” approach – there is no one best
way to manage. It is similar to the Situational
Theory. The appropriate management
actions and approaches depend on the
situation. Managers use a flexible approach,
draw on a variety of theories and
experiences, and evaluate many options as
they solve problems.
Management Theories
Management Theories
7. Modern Approaches to Management
Previous management theories focused on
efficiency – doing things right.
The focus of management theories over the
last 20 years has been organizational
effectiveness – doing the right things.
This emphasizes strategic issues e.g. vision,
mission, core values, organizational culture,
total quality management, etc.
Major Management Theories
Classical
Approach
Behavioral
Approach
Scientific
Management
Hawthorne
Studies
Administrative
Theorists
Maslow’s
Theory
Bureaucratic
Model
Theory X and
Theory Y
Quantitative
Approach
Management
Information
Systems
Contemporary
Approach
Systems
Approach
Contingency
Approach
Thank You