CHAPTER 1:
THE SCOPE OF
MANAGEMENT
1
WHAT IS MANAGEMENT?
Mary Parker Follet
• Art of getting things done through other
people
George R. Terry
• Field of knowledge that seeks to systematically
understand why and how men work together
to accomplish objectives and make these
cooperative systems more useful to mankind
Donnelly
• The process undertaken by one or more
individuals to coordinate the activities of others
to achieve results not achievable by one
individual acting alone
2
WHAT IS MANAGEMENT?
F. W. Taylor
• The art of knowing what you want to do and
then seeing that it is done in the best and
cheapest way
Lubber Gullick
• A process consisting of planning, organizing,
actuating and controlling, performed to
determine and accomplish the objectives
by the use of people and resources.
Henri M. Boettinger
• An art because like any of the arts, it requires
three components: vision, knowledge and
successful communication
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BASIC MANAGEMENT CONCEPT
Functional
Concept
Universality
Concept
Basic
Management
Concept
Productivity
Concept
‘Getting
Things done
Through
Others’
Concept
Leadership
and Decisionmaking
Concept
4
FUNCTIONS OF MANAGEMENT
Newman and Summer
• Planning, Organizing, Leading, Controlling
Luther Gullick
• Planning, Organizing, Staffing, Directing, Coordinating,
Reporting, Budgeting
Warren Haynes and Joseph Massie
• Decision Making, Organizing, Staffing, Planning, Controlling,
Communicating, Directing
Henri Fayol
• Planning, Organizing, Commanding, Coordinating,
Controlling
5
FUNCTIONS OF MANAGEMENT
Planning
Organizing
Leading
Controlling
6
LEVEL OF MANAGERS
Top Managers
Middle Managers
First Line Managers
7
Top
Managers
Middle
Managers
First Line Managers
SUBORDINATE
8
ROLES OF MANAGERS
Interpersonal Roles
• Figurehead Role
• Leader Role
• Liaison Role
Informational Roles
• Monitor Role
• Disseminator Role
• Spokesperson Role
Decisional Roles
• Entrepreneur Role
• Disturbance Handler Role
• Resource Allocator Role
• Negotiator Role
9
MANAGERIAL SKILLS
Technical Skills
Human Skill
Conceptual Skill
10
MANAGEMENT
LEVELS
TOP
MANAGERS
MIDDLE
MANAGERS
FIRST LINE
MANAGERS
MANAGERIAL SKILLS
Human
Skills
Technical
Skills
Conceptual
Skills
(10%)
(30%)
(60%)
Human
Skills
Technical
Skills
Conceptual
Skills
(20%)
40%)
(40%)
Human
Skills
Technical
Skills
Conceptual
Skills
(40%)
(40%)
(20%)
11
OTHER SKILLS
Basic
Knowledge
Management
Communication
Skills
Decision Making
Skills
Skills
12
PLANNING
ORGANIZING
TO ACHIEVE
ORGANIZATIONAL
STATED
OBJECTIVES
MANAGERS
PERFORM
LEADING
CONTROLLING
13
IMPORTANCE OF MANAGEMENT
1
• Critical element in the economic growth of the
country
2
• Essential in all organized effort
3
• Dynamic, life giving element in every organization.
14
MANAGEMENT –
UNIVERSAL OR SCIENCE
Universal
Science
Manager easily
transfer his skills
and knowledge
Management is
studied and tested
systematically
Manager applies
general principles
to all types of
organization
Theories can
guide managers
15
DIFFERENCES IN MANAGEMENT
BETWEEN PUBLIC AND PRIVATE SECTORS
CHARACTERISTICS
OF MANAGEMENT
PUBLIC SECTOR
service to
PRIVATE SECTOR
Aim / Objective
Accountability
To the public in general,
To the shareholders of the
especially when the budget is
company
debated in parliament
Performance
evaluation
The achievement of a better The profits earned through
quality of life
market share
Incentives offered
Salary
increases
and
•Fixed salary scales and rigid
promotion
prospects
promotional procedures
closely
linked
to
•Enjoy job security
performance
Union involvement
A high level of involvement
in decision-making
the
To
ensure
maximum
utilization of resources in
generating profits
To provide a
community
Traditionally little or no
involvement but moves
are
being
made
to
increase
worker
participation
16
CHAPTER 2:
SOME SCHOOLS
OF MANAGEMENT
17
CLASSICAL
Administrative Management
• Henri Fayol
Scientific Management
• Frederick Winslow Taylor
Bureaucratic Management
• Max Weber
18
ADMINISTRATIVE MANAGEMENT
-AREAS IN BUSINESS ACTIVITIESTechnical
Commercial
• Producing and manufacturing of products
• Buying raw materials and selling
manufactured goods
Financial
• Getting the capital necessary for business
Accounting
• Recording and taking stock of costs and
profits
Managerial Function
Protecting
• Planning, organizing, commanding,
coordinating, controlling
• Protecting the assets of the company
19
ADMINISTRATIVE MANAGEMENT
-PRINCIPLES OF MANAGEMENT-
PRINCIPLES OF MANAGEMENT
Division of work
Authority
Discipline
Unity of Command
Unity of Direction
Subordinate of individual interests to
general interest
Remuneration
Centralization
Scalar Chain
Order
Equity
Stability of tenure of personnel
Initiative
Esprit de corps
20
SCIENTIFIC MANAGEMENT
Time and
Motion
Studies
Friendly
Cooperation
Differential
Pay
Contribution
Recruitment
and Training
Reorganization
of Supervision
21
BUREAUCRATIC MANAGEMENT
Division of
labour
Hierarchical
Structure
Rules
Meritocracy
Impersonality
22
HUMAN RELATIONS SCHOOL
- HAWTHORNE STUDIES -
Interviewing
Studies
The Test Room
Studies
Observational
Studies
Hawthorne
Studies
23
BEHAVIOURAL
Abraham Maslow
• Motivation theory
• Human needs
• Human behaviour
• Hierarchy of need
Douglas Mc Gregor
• Theory X and Y
24
MASLOW’S NEEDS HIERARCHY
Self
actualization
Esteem
Affiliation
Security
Physiological
25
THEORY X AND THEORY Y
Theory X
Leader
• My employees dislike work and will try to
avoid it if possible
• My employees want and need me to
provide direction
• I am responsible for getting my employees
to do as much work as possible
Theory Y
Leader
• Most employees like to work and achieve
something
• I can count on my employees to be selfdirected and work toward the
organization’s objectives
• My employees are eager to take on
responsibilities at work
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SYSTEMS
Sub-systems
Interlocking
27
MANAGEMENT SCIENCE
•
Also known
Research
as
Operations
•
Applies scientific methods to
analyze
and
solve
management problems
•
Can solve specific problems
objectively
with
greater
precision
28
CHARACTERISTICS FOR EFFECTIVE
MANAGEMENT SCIENCE
•
The problems should not be too
broad or indefinite
•
The problems should consists of
tangible measurable factors
•
The problems should offer
opportunity
for
decision
between alternative
29
CONTINGENCY/SITUATIONAL
•
Emerged
from
real
experience of managers
life
•
The main determinants are
related to the external and
internal environment of an
organization
•
Three major elements:
– Environment
– Management concept
– Contingent
relationship
between them
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