Course Content
OVERVIEW OF MANAGEMENT
Definition and importance of management Functions of management Managerial roles Evolution of management thought Types of management environment
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PLANNING FUNCTION
Meaning and importance of planning Principles of planning Purpose of planning Types of plans Planning tools Process of planning Planning challenges Making plans effective Management by objectives
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ORGANIZING FUNCTION
Meaning and Importance of Organizing Structure and Designs of Organizations Principles of Organizing Process of Organizing Delegation Coordination Centralization and Decentralization Informal Organizations
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STAFFING FUNCTION
Meaning and Importance of Staffing Human Resource Planning Recruitment and Selection Training and Development Performance Management Reward Management Separation
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DIRECTING FUNCTION
Meaning and Importance of Directing Leadership Motivation Communication Group Dynamics Conflict Management
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CONTROLLING FUNCTION
Meaning and Importance of Controlling Elements of Control Characteristics of Effective Controls Control Process Role of Control in an Organization Tools of Controlling
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STRATEGIC MANAGEMENT
Overview of Strategic Management SWOT Analysis Strategy Formulation Strategy Implementation Strategy Evaluation
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EMERGING ISSUES AND TRENDS
Organization Culture Ethics and Social Responsibility Managing Innovation and Change Diversity and Inclusion Corporate Governance Globalization
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Principles and Practices of Management
About Lesson

QUESTION ONE

What are the four managerial functions and how do they interrelate with each other? {20}

ANSWER

The four managerial functions are:-

a) Planning (Decision making, looking ahead): It is the determining of an organization’s goals and deciding how best to achieve them. Managers think through their goals and actions in advance, that their actions are based on some method, plan, or logic, rather than on a hunch. It is the basis by which:-

  • The organization obtains and commits the resources required to attain its objectives
  • Members of the organization carry on activities consistent with the chosen objectives and procedures.
  • Progress towards the objective is monitored and measured so that corrective action can be taken where such progress is unsatisfactory.

b) Organizing – (harnessing, combining, co-ordinating resources): While planning provides the framework in terms of organizational goals, organizing refers to the process of arranging and allocating work, authority, and resources among an organization’s members so that they can achieve the organization’s goals effectively and efficiently. It entails setting or designing the organizational structure that suits the organization in terms of its resources and goals. Students will note organizing should necessarily follow after planning. Management cannot organize without any idea as to the purpose of such an exercise, thus tasks and positions are allocated after an organization has established its direction (planning)The organizational structure defines the reporting levels within an organization and provides a hierarchy of formal positions

c) Leading: – (Directing, supervising, overseeing, guiding, motivating): This entails directing, influencing, and motivating the task-related activities and efforts of organizational members to achieve the set goals of an organization. The leadership function is distinct from planning in that it involves dealing with people. It should be borne in mind that the leading function necessarily follows after organizing. Managers are given authority and responsibility as well as confirmation of their levels in the company through that organization’s function. It should therefore follow that you can not effectively lead without knowing: Who to lead? Where you belong in terms of the various departments of the organization. How much authority is bestowed upon you, and finally, Who you report to in the organizational hierarchy?

d) Controlling:- (Monitoring, Evaluating, Checking, Making sure): This process is the ultimate management function and it evaluates the efficiency and effectiveness of the other management functions. The control function is concerned with ensuring that the actions of the organization’s members do move the organization towards its stated goals. It is sometimes referred to as the process of monitoring progress towards the achievement of goals. The controlling function entails:-

  • Establishing standards of performance and how it will be measured
  • Measuring current performance
  • Comparing actual with standard performance, and 
  • Taking corrective action where deviations from stated goals are detected. Through the control function, the manager keeps the organization on its chosen track by timorously investigating and correcting and deviations from set standards

QUESTION TWO

Explain three ways of classifying managers {20}

ANSWER

a) Managers can be classified by management levels where we have:-
  1. First-line managers (operations managers or just line managers) – These are responsible for the work of employees only and as such do not supervise any managers. They are the lowest management level in the organizational hierarchy, being directly responsible for the supervision of non-managerial staff. First-line managers’ activities tend to focus mainly on the day-to-day running of the organization and they focus on the activities of sub-units such as departments and sections thereof. Typical titles of first-line managers are: foreman, supervisor, operations managers, etc
  2. Middle managers (tactical managers or management control level) – This may incorporate more than one level in the organization. They are primarily concerned with directing the operations of lower-level management. In addition, they are also responsible for implementing and interpreting the policies formulated by the top management level. Thus they are intermediaries between top management and lower-level management. Typical titles include Branch managers, Regional managers, senior managers, etc.
  3. Top management (also known as strategic managers or corporate level managers) – Top managers probably account for a relatively small group of executives who control the organization. They are thus responsible for establishing the organization’s goals, strategies, and operating policies. In addition, they also represent the organization to the external environment e.g. by meeting with government officials, other business executives, other institutional heads, etc. Activities undertaken at this level are thus of a long-term nature and mainly guide the organization’s conduct with the environment. They tend to focus on the organization as a whole, with emphasis on both the present and the future scale of operations typical titles are: Chief Executive Officer, Managing Director, and General Manager, etc.

b) Management can also be classified according to the scope of activities 

  1. Functional Managers – These are responsible for just one specialty organizational activity e.g. the finance manager (responsible for finance) and the human resources managers (responsible for the human resource function) this level of management may be likened to that of operational management for they are also responsible for the day to day running of the organization as well as the direct supervision of subordinates. The people headed by a functional manager are engaged in a common set of activities
  2. General Managers – Unlike functional managers, general managers oversee the complex units e.g. subsidiaries or independent operating divisions. In this case, they will be responsible for all the activities of that unit such as marketing, production, etc. Thus the general manager will be in charge of the functional managers falling under his sub-unit or division.

QUESTION THREE

State and explain three managerial roles as identified by Henry Mintzberg. Clearly identify how each is subdivided. {20}

ANSWER

a) Interpersonal Roles: These roles relate to how a manager interacts with others i.e. subordinates, peers, supervisors, and outsiders. They include the roles of:-
  1. Figurehead: – As a figurehead, the manager performs certain ceremonial roles, which are of a legal nature. Typical examples include welcoming visitors, attending subordinates’ weddings, and performing ribbon-cutting ceremonies as well as taking customers to lunch. In this case, managers are symbols and as such personify an organization’s successes and failures.
  2. Leader: – Managers are accountable for the actions of their subordinates as well as their own. It, therefore, follows that by showing subordinates how to perform under pressure, what hours they should work, promoting, etc, managers will be performing the role of leader.
  3. Liaison: – In the liaison role, managers must learn to work with everyone both within and outside the organization who can help them achieve their goals. This role necessitates establishing networks of contacts and creating obligations among the people with whom the manager interacts. In this instance, managers also act as contact persons and their activities include writing correspondences, replying to customer inquiries, etc. Thus liaison role enables the manager to win support for his/her proposal.

b) Informational Roles: These relate to the manager’s tasks of receiving and communicating information. Managers need the information to make quality and informed decisions. Similarly, other people, both within and outside the organization rely on information received from and/or transmitted through the manager. Mintzberg identifies the following three informational roles that managers have to undertake:-i.

  1. Monitor:Managers are constantly and actively seeking information from both inside and outside the organization that may be useful to the organization. They establish a network of contacts through which they get information. In addition, they ask subordinates for information where the subordinates are more informed. Where possible, they also obtain information from unsolicited sources. It is because of this role, therefore that managers are often said to be the most informed people in an organization.
  2. Disseminator:Here managers will be responsible for contributing important information to subordinates. The manager has to make sure that subordinates have all the information to ensure that they carry out their duties efficiently and effectively. This role may also be thought of as a communication role, especially combined with the role of monitor.
  3.  Spokesperson:Managers in this instance are responsible for transmitting information to the outside world. Literally put, managers are said to be the organization’s public relations managers (officers). Typical activities include, among other things, replying to letters from customers, giving speeches on behalf of the organization, etc.
c) Decisional Roles: According to Mintzberg, information is the basic input for managerial decision-making. The following are four decisional roles
 
  1. Entrepreneur: – Managers try to improve the performance of their sub-units as if they are actual entrepreneurs. Examples include situations when managers make decisions that will maximize shareholders’ wealth and add value to the organization, thus, managers act as entrepreneurs whenever they act in the best interest of the providers of capital. They make decisions that will minimize costs and maximize returns.
  2. Disturbance Handler: This is the role of problem-solving. In this case, the manager is expected to take care of ‘sticky’ situations. Thus the manager is expected to come up with solutions to difficult situations. The role of disturbance handler requires both analytical and conceptual skills. Good examples of disturbance handlers(which the manager has to deal with) could be industrial actions (strikes), low performance, high employee turnover, etc.
  3. Resource Allocator: The role of the resource allocator entails all the activities that the manager undertakes to minimize revenue and minimize costs. It is primarily concerned with the activities relating to allocating resources(human physical or otherwise) among the organizational members. For instance, a manager is expected to make decisions, say, on the best way of utilizing resources such as that the revenue of the organization reaches the desired targets.
  4.  Negotiator:As negotiators, managers spend a lot of time bargaining for a better deal for their sub-units or for the organization as a whole. Typical examples include bargaining with workers for salary increases, bargaining with suppliers for cheaper materials, etc. Thus, negotiating requires the application of various managerial skills such as interpersonal, diagnostic, technical, etc

QUESTION FOUR

Identify five (5) basic management skills and explain the major sources of these skills. Do managers at all levels require these skills? Explain giving examples. {20}

ANSWER

In order to effectively and efficiently undertake their management functions, managers need to have certain unique abilities called managerial skills. Five managerial skills are

  1. Technical Skills: – These are skills necessary to accomplish specialized activities. They incorporate the ability to use procedures, techniques, and knowledge of a specialized field. For instance Doctors, accountants, and even musicians all have technical skills in their respective fields. First-line managers have to possess technical skills as they are responsible for the day-to-day running of the organization. This requires knowledge of procedures, techniques, and skills in their specific areas of responsibility.
  2. Interpersonal or Human Skills:- At the first line level, where managers directly supervise subordinates, they are expected to have the ability to work with, understand, and motivate other people (subordinates) as individuals or in groups. They spend considerable time interacting with people not only inside but also outside the organization.
    This group of abilities is often referred to as interpersonal or human skills and communication skills also form part of these. Interpersonal skills could be linked to Mintzberg’s managerial roles.
  3. Conceptual Skills: – These refer to the ability to coordinate and integrate all of the organization’s interests and activities. It entails the ability to see the organization as a whole, understands how its component parts interrelate, and anticipate how a change in one affects the whole. Managers with a high level of conceptual skills have the mental capacity to understand various cause-and-effect relationships in the organization and to view the organization in a holistic manner. For instance, a conceptual manager would, before making any decision pertaining to his department or function, ascertain the effect of such a course of action on the operations of the whole organization. Conceptual skills are especially important at the higher level of management i.e. General Managers, Chief Executives, and others. They are a requisite at the higher echelons of the management hierarchy.
  4. Diagnostic Skills. An organization could be facing problems e.g. in its operations. Managers must have the ability to diagnose them from their symptoms. For instance, a company could be faced with a spate of resignations. This would probably be a result of industrial relations problems within the organization. Diagnostic skills enable the manager to be able to determine deep-rooted problems from symptoms and are necessary for effective problem-solving. Diagnostic skills are important at all levels of management but especially at the operational and tactical levels.
  5. Analytical skills. These are closely related to and complement diagnostic skills. They entail the ability to identify the key variables in a particular situation, see how they inter-relate and decide which ones should receive the most attention. Analytical skills enable managers to determine the best possible strategies and select the most appropriate one for a particular situation. Thus, they help managers decide on the best course of action to solve problems identified by diagnostic skills. In some circles, analytical skills are similar to decision-making skills, although analyzing a problem may itself not amount to making any decision.
    There are two main sources of managerial skills which are (1) education and (2) experience

QUESTION FIVE

Give an account of Henry Fayol’s 14 principles of management {20}

ANSWER

Henry Fayol came up with 14 principles which can be represented by the following mnemonic ADDEC – SORIE – USSU.
ADDEC

  • Authority – Managers must give orders so that they can get things done. They need both formal and personal authority to carry out the tasks.
  • Discipline – Members of the organization must abide by the rules and regulations governing them. Discipline results from good leadership, fair agreements, etc.
  • Division of labor – Specialisation of functions will yield maximization of efficiency in production e.g. in assembly lines.
  • Equity – Managers should be friendly and four to their subordinates
  • Centralization – Managers should retain final responsibility in decision-making, but should also give subordinates sufficient authority to carry out assigned tasks.

SORIE

  • Scalar Chain – The line of authority in an organization runs in order of hierarchy from the high rank to the lowest ranks.
  • Order – Material and people should be at the right places at the right time. People should be assigned jobs for which they are suitable.
  • Remuneration – Compensation paid for work done should be fair to both the organization and employee.
  • Initiative – Subordinates should be given the freedom to conceive and carry out their plans
  • Esprit de Corps – promoting team spirit will give the organization a sense of unity. Team spirit should prevail.

USSU

  • Unit of Command – One man one boss: Each man must receive commands from only one superior
  • Subordination – Subordination of individual interest for the common good: the interests of the organization as a whole should come before the interests of individuals.
  • Stability of Employees – A high employee turnover should be avoided as it results in the reduction of efficiency
  • Unity of direction – Operations that have the same objective should be under one manager to boost coordination and unity of direction.

QUESTION SIX

Discus, the main theories of management. Who are the proponents in each category?

ANSWER

There are five main management theories which are:

(i) The Classical Management Theories: The classical management theories are classified into three main categories as follows
a) THE SCIENTIFIC MANAGEMENT THEORY (FREDRICK WINSLOW TAYLOR, HENRY FORD, HENRY GANTT, AND FRANK AND LILLIAN GILBRETH)
This theory was pioneered by Fredrick Winslow Taylor and it sought to scientifically determine the best methods of performing any task, and for selecting, training, and motivating workers. He believed in the scientific determination of the best man-machine combination. Taylor based his management system on production-line time studies. He analyzed and timed workers’ movements in a sense of jobs. He broke each job into its components and designed the quickest and best method of performing each component. With the present equipment in mind, he was thus, able to determine what output each worker would produce. Taylor also believed in the differential rate system of compensation whereby higher wages were paid to more efficient workers. Workers are urged to surpass their previous performance standards for them to earn more salaries. Taylor had developed the following guidelines:

  1. The development of a true science of management so that best methods for performing each task could be determined
  2. The selection of workers on a scientific basis, so that each would be given responsibility for the task for which he or she is best suited.
  3. The scientific education and development of the workers.
  4. Intimate friendly co-operation between management and labor
  5. One major contribution of this theory is productivity. Examples are in today’s world are in the form of assembly lines that produce thousands of products in fractions of a second.

The major limitation is that it disregards factors such as the human desire for job satisfaction through responsibility and social needs, this results in frustration.

b) THE ADMINISTRATIVE MANAGEMENT THEORY (ADVOCATED BY HENRY FAYOL)
The major thrust here was on the administrative side of management, unlike scientific management which concentrates on production. Henry Fayol is said to be the father of classical management theory. He drew distinctions between the various business operations and maintained that ‘with scientific forecasting and proper methods of management, satisfactory results were inevitable’. Fayol divided business operation into six interrelated activities:
(1) Technical – producing and manufacturing of products
(2) Commercial – buying raw materials and selling products
(3) Financial – acquiring and using capital
(4) Security – protecting employees and property.
(5) Accounting and
(6) Management
He was the pioneer of managerial functions of planning, organizing, leading, and controlling. He also came up with the 14 principles of management – ADDEC SORIE USSU. (Refer to question 5).

c) THE BUREAUCRATIC THEORY ( ADVOCATED BY GERMAN SOCIOLOGIST CALLED MAX WEBER)
He believed that any goal-oriented organization consisted of thousands of individuals and as such there was a need to carefully regulate and control their activities.
His emphasis was therefore on the bureaucratic organization which entails.

  • Strict adherence to the hierarchy and formal communication lines
  • Strictly defined regulations or a consistent set of abstract rules
  • Rationally set out objectives and activities with a clearly set out division of labor
  • Technical competence and merit-based performance evaluation
  • Making activities and procedures more predictable and standardized to make for easier control and uniformity of performance.
  • Impersonal conduct of business. Management should maintain appropriate social distance with their subordinates.

The major contributions of the bureaucratic school placed emphasis on the division of labor, reliance on rules, a hierarchy of authority, and employment based on technical competence which may improve efficiency, However, the major weaknesses of the bureaucratic school lay in the resultant lack of innovation and excessive reliance on formal, impersonal channels which tend to reduce efficiency in decision-making.

(ii) THE BEHAVIOURAL MANAGEMENT THEORIES
The behavioral school was pioneered by a group of scholars trained in psychology and other social science disciplines who felt that the classical approaches did not yield efficiency and harmony at workplaces. It is split into two main branches which are (1) the Human Relations Movement and (2) The Behavioural Science Approach.
a) THE HUMAN RELATIONS MOVEMENT (BY ELTON MAYO AND THE HAWTHORNE EXPERIMENTS)
This movement arose out of the need to discover the social and psychological factors that would create effective human relations. It followed the experiments conducted at the Western Electric Company which have come to be known as ‘The Hawthorne Studies. Elton Mayo concluded that – through his studies – a complex chain of attitudes had influenced the productivity variations. Researchers discovered that workers would work harder if they were given special attention and management was concerned with their welfare.
The major contribution of the Human relations approach was that it highlighted the fact that production is not just an engineering problem as contented by Fredrick Taylor, but was a social problem as well. In addition, their researches laid the foundation for further studies in group dynamics and the effect of group pressure, values, and norms on productivity. Great emphasis was now put on management training in human relations skills as opposed to technical skills. Their limitations however relate to the design and analysis of the studies and experiments

b) THE BEHAVIOURAL SCIENCE APPROACH
It should be noted that Mayo and his advocates used scientific methods in their studies. Later behavioral researchers, however, were more righteously trained in psychology, sociology, and anthropology and as such used more sophisticated research methods. These came to be known as ‘behavioral scientists’ as opposed to the ‘the human relations theorists’. The behavioral scientists, (most notably, Professor Abraham Maslow, Fredrick Herzberg, Chris Argyris, Douglas McGregor, Rensis Likert, Victor Vroom, and BF Skinner) believed in the ‘self-actualization man concept’ and a host of other concepts as a better explanation of human motivation. In particular, Maslow identified the hierarchy of needs that motivate a man to exert effort towards achieving organizational goals. These range from the basic human needs called physical needs (e.g. sex, hunger, shelter, thirst, etc) to self-actualization needs (being the needs to realize one’s full potential).
He stated that these needs can only be satisfied one after the other in a hierarchical order. Once people have satisfied their lower-level needs, they are motivated by esteem (egoistic) needs as well as self-actualization needs. Most theorists in this grouping opposed some aspect of Maslow and made their own assertions, as they argued that not everyone goes predictably from one need level to the other. Thus, according to other theorists in behavioral science, the more realistic model of human behavior was one of the ‘complex man concepts’. The effective manager should be aware that no two people have the same set of needs and the manager has to address such needs differently

Their major contribution has been in shading light into the areas of human motivation, group behavior, interpersonal relationship at work, and the importance of work to human beings. It says that managers must be sensitive to the needs of the workers.

(iii) THE QUANTITATIVE THEORIES (OPERATION RESEARCH AND MANAGEMENT SCIENCE)
This approach tended to concentrate on the development of solutions to more complex problems. It is based on mathematical modeling. A model is a theoretical representation of a real-life situation, or in this case, a real-life problem. It shows the factors giving rise to the problem and their inter-relationship. Various alternative solutions to the problem are simulated and computers are used to determine the best solution. It also placed emphasis on the development of Management Information Systems (MIS). The greatest contribution of the Quantitative theory was the use of computers to solve complex problems using modeling and simulation techniques.

The greatest limitation is that most managers feel that this management science places too much emphasis on complicated mathematical formulae which they may be unable to fully comprehend.

(iv) THE SYSTEMS APPROACH
This approach offers more insights into management. It views the management process as a ‘system’ A system is an interrelated set of components functioning as a whole. The organization is thus viewed as a system, consisting of inputs from the environment in the form of material, human and financial inputs, processes them, and releases finished products as outputs to the environment. Thus, the activity of each of the components of a system (called subsystems) has an effect on the activities of the other components. Management has to view an organization as an open system – meaning a system that interacts with the environment- and has to communicate with other employees, departments, as well as representatives of other organizations. The major contribution of this systems approach is that it highlights the dynamic and interrelationship nature of organizational activities and thus, the enormity of the management task. It may also be said to be a basis for conceptual thinking for general managers who need to have an overview of organizational objectives it also equips the manager with a unique skill to understand how a given variable is composed, and hence, it gives rise to a holistic view of the organization.
The major weakness is that: as this is an evolving field of study, it may not offer conclusive insights into the best managerial practice but generalize i.e. applies to all schools

(v) THE CONTINGENCY APPROACH (ALSO KNOWN AS A SITUATIONAL APPROACH)
The contemporary thought in management is that of integrating the various schools of management thought and focusing on the interdependence of the many factors involved in the managerial situations. The managers’ task was to identify which technique will, in a particular situation and under certain circumstances, best contribute to the achievement of organizational goals.

Advocates of this approach maintain that universal solutions and principles cannot be applied to social systems such as organizations; hence the best solution depends on the situation. Some say such a way of looking at management enables us to look at each situation on its own rather than offer blanket solutions. The major contributions are that: By accepting that there is no one best management technique, proponents of this theory see it as the leading branch in management thought, meaning that it entails elements of all other schools and the choice of a technique is based on the available option. The contingency approach prepares managers for the unanticipated problems relating to the application of other management techniques.

(vi) THE JAPANESE APPROACH TO MANAGEMENT
In recent years, a great deal has been written about the principles of Japanese management, principally because of their ability to increase productivity. However, many of the components of the Japanese model of management are dependent upon the influences of the Japanese culture, and their exportability is limited. The features of Japanese management include:

  1. A focus on high quality and getting things ‘right the first time;
  2. Continuous improvement of all work processes, with a high degree of worker involvement;
  3. Encouragement of teamwork;
  4. Non-specialisation and flexibility of workers;
  5. A paternalistic attitude to workers by the organization;
  6. Lifetime employment and job security;
  7. A strict, bureaucratic, hierarchical structure;
  8. Egalitarianism and the absence of class
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