HAND OUTS FOR ORGANIZATION AND MANAGEMENTCHAPTER 1- NATURE AND CONCEPT OF

MANAGEMENT1.1 Defniton and Functons o ManagemenMANAGEMENT

- is the funcon that coordinates the eorts of people to accomplish goals and objecves by
usingavailable resources eciently and eecvely.

Defniton o Managemen

According to:

Harold Koonz

- “Management is the art of geng things done through and with people in formally organizedgroups.”

Henri Fayol

- “To manage is to forecast and to plan, to organize, to command, to co-ordinate and to control.”

F.W Taylor

- “Management is an art of knowing what to do, when to do and see that is done in the best
andcheapest way.”

Peer Drucker

- Basic task of management as twofold: Markeng and Innovaon.

Functons o Managemen1. PLANNING

- is a process that involves the seng of the organizaon’s goals, establishing strategies
foraccomplishing those goal and developing plans of acons that managers intend to use to achieve
saidorganizaonal goals.

2. ORGANIZING

- is the process of arranging and allocang work, authority, and resources among anorganizaon’s
members so that they can achieve organizaonal goal.3.

STAFFING

- is a process through which capable employees are selected, recruited, properly trained,e ec vely
developed, righully rewarded and their joint eorts are harmoniously.- A managerial funcon that
takes people with necessary skills into the organizaon and develops theminto precious organizaonal
resources.

4. LEADING/ DIRECTING

- involves the social and informal sources of inuence that you use to inspire acontaken by others.

5. CONTROLLING

- involves ensuring that performance does not deviate from standards. Controlling consists ofthree steps,
which include (1) establishing performance standards, (2) comparing actual performance
againststandards, and (3) taking correcve acon when necessary.
Managemens Primarily Functon1.SHAREHOLDERS

- making profit

2.CUSTOMERS-

creatng valued products at a reasonable cost.

3.EMPLOYEES-

providing great employment opportunities

1.2 EVOLUTION OF MANAGEMENT

1. Classical Theories of Management2. The Modern Management Theories

CLASSICAL THEORIES OF MANAGEMENT

1.Scienc Management Theory2.Bureaucrac Management Theory3.Administrave Management

Theory4.Human Relaons1.

Scientfc Managemen TheoryFrederick Taylor-

father of Scienc Management- He proposed work methods designed to increase worker

producvity.

- Scientfc Managemen

focuses on worker and machine relaonships.

2. Bureaucratc Managemen Theory

- developed by Max Weber.- Rules and regulaons to eliminate managerial inconsistencies- Posions in
the rm should be held based on performance not social contacts.- Posion dues are clearly
idened. People should know what is expected of them.- Lines of Authority should be clearly
idened. Workers know who reports to whom.

PRINCIPLES OF BUREACRATIC MANAGEMENT THEORY1. Proper Division o  Labor-

should be xed and there should be a balance between power andresponsibilies.

2. Chain o Command-

should be constructed in a way that informaon related to decision and workscan ow eecvely
from top to boom.

3. Formal Selecton-

employees are selected on the basis of technical skills and competenciesRules and requirements-
required to ensure uniformity, so that employees know exactly what is expected of them
3. Adminisratve Managemen Theory

HENRI FAYOL- Father of Modern ManagementManagement Consists of 6 Types of Acvies:1.Technical

Acvies ( Producon and Manufacturing)2.Commercial Acvies
(Purchasing and Selling)3.Financial Acvies (Opmum Use of Capital)4.Security ( Protecon of
Property and Persons)5.Accounng ( Balance Sheets, Cosng, Stascs)6.Managerial )( Planning,
Organizing, Coordinang, Controlling)

HENRI FAYOL’S 14 PRINCIPLES

1.Division of Work2.Authority and Responsibility3.Discipline

4.Unity of Command5.Unity of Direcon6.Subordinaon of Individual to general

interest7.Remuneraon8.Centralizaon of Authority9.Scalar Chain or
Line Authority10.Order11.Equity of Treatment12.Stability of Workers13.Iniave14.Team Spirit ( Espirit
de crops)

4. Human Relatons

- It has been referred to as the neo-classical school because it was inially a reacon to theshortcoming
of the classical approaches to management

THE MODERN MANGEMENT THEORIES

1.Quantave Approach2.System Approach3.Conngency Approach

1. Quantatve Approach

- Management is concerned with problem solving and it must make use of mathemacal tools
andtechniques for the purpose.- The dierent factors involved in management can be quaned and
expressed in the form ofequaons.- Management problems can be described in mathemacal models.

2. Sysem Approach

- considers the organizaon as a dynamic and inter-related set of parts- All organizaons are open
system3.

Contngency Approach

- Latest approach to management which interact the various approaches to management- also known as
situaonal approach, is a concept in management stang that there is no oneuniversally applicable set
of management principles (rules) to organizaons.

1.3 FUNCTIONS, ROLES AND SKILLS OF A MANAGERMANAGER

- is responsible for planning and direcng the works of groups of individuals and monitoringtheir
performance and taking correcve acon when necessary for the accomplishment oforganizaonal
goals and objecves.

ROLES OF A MANAGER
1.Interpersonal Role2.Informaonal Roles3.Decisional Roles

1.Inerpersonal Roles

- The roles in this category involve providing informaon and ideas.1.

Figurehead-

A manager has social, ceremonial and legal responsibilies. He is expected to be asource of inspiraon.
People look up to him as a person with authority, and as a gurehead.2.

Leader-

this is where manager provides leadership for his team/ department/ organizaon3.

Liaison-

Managers must communicate with internal and external contacts. He needs to be able tonetwork
eecvely on behalf of his organizaon

2.Inormatonal Roles

- involves processing informaon1.

Monior

- regularly seeks out informaon related to his organizaon and industry, looking forrelevant changes in
the environment. He also monitors his team, in terms of both their producvity,and their well being.2.

Disseminaor

- communicates potenally useful informaon to his colleagues and his team.3.

Spokesperson-

represents and speaks for his organizaon.

3.DECISION MAKING/ DECISIONAL ROLE

- involves using informaon1.

Enrepreneur-

A manager creates and control change within the organizaon. This means solvingproblems, generang
new ideas, and implemenng them.2.

Disurbance Handler-

When an organizaon or team hits an unexpected roadblock; it’s themanager who must take charge. He
also needs to help mediate disputes within it.3.

Resource Allocaor-
A manager also needs to determine where organizaonal resources are bestapplied. This involves
allocang funds, as well as assigning sta and other organizaonal resources.4.

Negotaor

- A Manager may be needed to take part in, and direct, important negoaons in histeam, department,
or organizaon.

SKILLS OF MANAGER

1.

Technical Skills

- necessary to accomplish or understand the specic kind of work being done in anorganizaon.2.

Inerpersonal Skills-

the ability to communicate with understand and movate both individuals andgroups.3.

Concepual Skills-

are the ability to think and to conceptualize about abstract and complex situaon.4.

Communicaton Skill-

refers to manager’s ability both to eecvely convey ideas and informaon toothers and to
eecvely receive ideas and informaon from others.5.

Decision Making Skills-

refers to manager’s ability to correctly recognize and dene problems andopportunies and to then
select an appropriate course of acon to solve the problems and capitalizeon opportunies.6.

Time-Managemen Skills-

refers to manager’s ability to priorize work, to work eecvely, and todelegate appropriately