Management Practice & Ethics

BRC:3107

By

Dr. Doris Gitonga

 Course Objectives
To help the learner acquire basic managerial skills as well as gain understanding of the
following:-
1)The concept of management
2)Historical development of management
3)Management process
4)Strategic Planning process
5)Organizational structures
6) Human Resource Mgt
7)The role of leadership in mgt
8) Effective Management Controls (Monitoring & Evaluation)
9) Managerial Ethics
10)Change mgt in organizations
11)Emerging issues in modern management
w

Introduction
To Management
PART 1
Introduction to Management
Management In Organizations

Organization-A group of people working together in a

structured and coordinated manner for achievement of a set
of objectives/ goals
McKinsey’s 7S Framework (Model of an
organization)
Strategy
 Structure
 Systems
 Staff
 Shared values
 Skills
 Style.
McKinsey’s 7S Framework
Types of Organizations

(i) Private companies

(ii) Public institutions
(iii) Government Agencies
(iv) Hospitals
(v) Schools
(vi) Churches
Introduction to Management………..
Organizational Goals
(i)To make profits
(ii)Revenue Collection
(iii)National Defense
(iv)Discovering knowledge
(v)Charity
Introduction to Management………..
Organizational Resources
Human Resources
Financial Resources
Physical Resources
Informational Resources
What is management?

There is no single definition of the term “management”.

Broad definition :- The process of getting things done
through others (employees) in an organization.

However, management has also been defined under

different disciplines by several scholars in different ways:-
Management Scholars

Most management scholars have defined it as a

process used to direct actions and behaviors in an
organization. It is done through functions of
planning, organizing, directing and controlling
organizational resources aimed at achieving
organizational goals including gaining the
commitment of the organization employees through
motivation.
Management scholars………………
( 1) Henri Fayol, ( 1916), a management guru, defines
management as a process that is comprised of five
functions:-

(a) Planning & forecasting

This is where the manager examines the future and draws
up plans of action to be followed to achieve the stated
organizational objectives.
Management scholars………………
(b) Organizing
This is like building up the structure of the
organization. It would involve bringing
together both the material and human
resources of the undertaking.

(c ) Commanding/ Directing
Fayol sees it as an activity to bring order in
an organization. Commanding and directing
also involves providing guidance and
leadership to the human resources.
Management scholars………………
(d) Coordinating
This involves binding together, unifying and harmonizing
all activities and efforts in an organization. The activities
are knitted properly where there is effective
communication.
(e) Controlling
This ensures that everything works in conformity with the
laid down procedures. Controlling will also involve an
evaluation of the organizational achievements against the
set targets. At the controlling stage, recommendations are
made and remedial action taken.
Management scholars……………

Fayol’s essential management activities or

functions as outlined above are universal to
organizations whether small or big, simple or
complex. However, they are practiced in
varying degrees according to the structure,
philosophy, culture, size and nature of the
enterprise.
Management scholars……………
(2)Henry Mintzberg (1973) provided a modern approach to
the concept of management. His was a modification of
what Fayol had developed over the years. He viewed
management as being comprised of a group of activities
which he defines as roles. He grouped ten basic roles
performed by managers under three (3) broad headings.
Management scholars……………
(a) Interpersonal role
Under this role, the manager is seen as a symbol or figurehead.
This role becomes necessary because of the position the
manager occupies. Duties like signing documents and officially
receiving visitors are recognized in this role. Under the same
role the manager is seen as a leader. Here, the manager hires
employees, trains them, encourages, fires, remunerates and
makes judgments and other decisions. Then a manager is seen
as a liaison. This is where the manager provides contact with
the outside community, suppliers, customers, the organization
and others.
Management scholars……………
(b) Informational role
Under this role, Mintzberg saw a manager as a monitor. The
manager gathers information in order to be well informed. A
manager is also seen as a disseminator. This is where the
manager provides a channel through which external and
internal information flows to the workers. Under the same role,
a manager is seen as a spokesperson or representative of the
organization. The manager speaks for subordinates to the top
management. He or she also represents the top management to
the subordinates.
It is important to note that the three activities of being a
monitor, a disseminator and spokesperson are all linked
together and they provide a communication network.
Management scholars……………
(c) Decisional role
Under this role, managers are seen as entrepreneurs. The
manager becomes an initiator, an innovator, a problem
solver, and a designer of project improvement. Again, the
manager is a disturbance handler. That means he
responds to situations such as resignations, firings or loss
of customers. A manager is also seen as a resource
allocator. He allocates finance, human resource,
equipment and space appropriately. The same manager
carries out the role of a negotiator. This is especially,
when conflicts arise with the customers or even among the
employees.
Management Gurus of The 19th/20th Century
Fayol Mintzberg
 Working Definition
Generally, management can be defined as a set of
activities including planning and decision making,
organizing, staffing, leading and controlling directed
at an organization’s resources with the aim of
achieving organizational goals in an efficient and
effective manner.

Although the definition is simple, the job of

management is complex. Management must make
good decisions, communicate well, delegate, plan,
train people, motivate people…etc . Mastery of the job
is therefore vital to organizational success.
A Manager

A manager is someone in an organization

whose primary responsibility is to plan, make
decisions, organize, lead, and control human,
financial, physical and informational resources
regardless of size or purpose/objectives of the
organization .
c
 Evolution of Management Theory
(Schools of Management Thought)
The schools of management thought are
theoretical frameworks for the study of
management. Each of the schools of management
thought are based on somewhat different
assumptions about human beings and the
organizations for which they work.
 Since formal study of management began late in
the 19th century, the study of management has
progressed through several stages as scholars
and practitioners working in different ereas
focused on what they believed to be important
aspects of good management practice.
a

Over time, management thinkers have

sought ways to organize and classify the
voluminous information about management
that has been collected and disseminated.
These attempts at classification have
resulted in the identification of management
schools.
a

Disagreement exists as to the exact number

of management schools. Different writers
have identified as few as three and as many
as twelve. Those discussed below include;-
 (1) Pre-classical Period
(2) The classical school,
 (3) The behavioral school,
 (4) The quantitative or management science
school,
 (5) The systems school,
 (6) The contingency school.
 (7) The contemporary/modern school
(1) Pre- Classical School/Period
Management concepts and principles were
extensively used during the Roman and
Chinese empires but there was no scientific
way of testing the concepts. For instance in
the following instances, concepts like
delegation, bureaucracy, communication,
staffing, teamwork were applied:-
Building of the tower of Babel
Building of the pyramids of Egypt
The exodus of Israel community from Egypt
Construction of the great wall of China
Construction of the wall of Jericho
(2) The classical School/Period
Classical Theory : One of the first schools of
management thought, the classical
management theory, was developed during
the age of Industrial Revolution during the
period from 1900's to mid-1930. During this
period the classical theories of organization
began to emerge.

This theory believes that employees have

only economical and physical needs, and their
social needs and job-satisfaction either don't
exist or are unimportant.
a

Accordingly, this school advocates:-

High specialization of labor,

Centralized decision making,
Profit maximization

This school of thought is made up of three

branches :
(2a) Scientific Management Theory
(2b) Classical administrative Theory
(2c ) Theory of bureaucracy
(2a) Scientific Management Theory :-

• The theory was developed by Frederick Taylor who

is also called the “father of scientific management.”
It focused on the main work force involved directly
with the production in an organization. It upholds
the philosophy that sought to increase worker
productivity and make the work easier by
scientifically studying work methods and
establishing standards.
 Scientific Management Theory……
Scientific management as developed by Taylor was based on five
main principles:-
1)The development of a scientific method of designing jobs to
replace the old way without standards. This involved gathering,
classifying and tabulating data to arrive at the best way to perform a
task. Things like job descriptions and key performance indicators are
considered to be of great importance in enhancing worker
productivity.

2)Progressive training and development of workers/employees and

matching the job to the skills of an employee so as to carry out their
given job efficiently.
Scientific Management Theory……

(3) Scientific selection of workers and provision

of wage incentives to the workers for
increased output

(4) With this theory, Differential Piece Rate

Methods are also used to increase the
organizational productivity.

(5) A division of work resulting in

interdependence between management and
workers. Taylor believed if they were truly
(2b) Administrative Theory :
Among all well-known contributors, Henri
Fayol is called as the most notable
contributor to this theory. Administrative
theory focused on the total organization. It is
focused on the administrative aspects of
management which directly or indirectly
effect productivity of the organization.

He discussed 14 general principles of

management.
The 14 Management Principles by Henri Fayol
(1841-1925):-
(1) Division of Work. Specialization allows
the individual to build up experience, and to
continuously improve his skills. This results in
more efficiency.
(2) Authority. The right to issue commands or
instructions. This must go along with
balanced responsibility for its function.
(3) Discipline. Employees must obey orders
and regulations. But this is two-sided:
Employees will only obey orders if
management play their part by providing
good leadership.
The 14 Management Principles by Henri Fayol
(1841-1925):-
(4) Unity of Command. Each worker should
have only one boss with no other conflicting
lines of command. Confusion arises where
orders/instructions are given to an employee
by many superiors.
(5) Unity of Direction. People engaged in the
same kind of activities must have the same
objectives in a single plan. This is essential to
ensure unity and coordination in the
enterprise.
(6) Subordination of individual interest (to
the general interest). Management must see
that the goals of the firms are always upheld
The 14 Management Principles by Henri Fayol
(1841-1925):-
(7) Remuneration. Payment is an important
motivator although by analyzing a number of
possibilities. It can be used to bring fairness
to both firm and employees.

(8) Centralization (or Decentralization). This

is a matter of degree depending on the
condition of the business and the quality of its
personnel.
The 14 Management Principles by Henri Fayol
(1841-1925):-

(9) Scalar chain (Line of Authority). . Scalar

chain refers to the number of levels in the
hierarchy from the ultimate authority to the
lowest level in the organization. It should not
be over-stretched and consist of too-many
levels.
A hierarchy is necessary for unity of
direction. But lateral communication is also
fundamental, as long as superiors know that
such communication is taking place
The 14 Management Principles by Henri Fayol
(1841-1925):-
(10) Order. Both material order and social
order are necessary. The former minimizes
lost time and useless handling of materials.
The latter is achieved through organization
and selection.
(11) Equity. In running a business a
‘combination of kindliness and justice’ is
needed. Treating employees well is important
to achieve equity.
(12) Stability of Tenure of Personnel.
Employees work better if job security and
career progression are assured to them. An
insecure tenure and a high rate of employee
The 14 Management Principles by Henri Fayol
(1841-1925):-
(13) Initiative. Allowing all personnel to show
their initiative in some way is a source of
strength for the organization. Even though it
may well involve a sacrifice of ‘personal
vanity’ on the part of many managers.
(14) Esprit de Corps. Management must
foster morale, enthusiasm and devotion of its
employees. He further suggests that: “real
talent is needed to coordinate effort,
encourage keenness, use each person’s
abilities, and reward each one’s merit without
arousing possible jealousies and disturbing
 (2c) Theory of Bureaucracy
This theory was developed by Max Weber (A
German).
He proposed that, to achieve efficiency:-

1)Positions in an organization should be arranged in

a clearly defined hierarchical structure to
illustrate the flow of command and authority.
2)Officials must be appointed on the basis of
qualifications & experise( career orientation). They
must never be elected.
3)Officials must be separated from the owners of an
organization.
4)Task specialization and division of labor
Workers in classical period (the 19th Century)
(3) The Behavioral Management School
Advocates of the earlier classical school of
thought viewed organizations and jobs from a
mechanistic perspective. They conceptualized
organizations as machines and workers as cogs
within those machines.
The view of this school was that people behavior
in an organization can be influenced by use of a
stimuli like threats, punishment, force,
inducement or bonuses.
The behavioral management perspective placed
more emphasis to individual attitudes, behaviors
and on group processes.
The Behavioral Management School ……..

Some of the contributors of the behavioral

school were Munsterburg (1863-1916), Follet
(1868-1933), Elton Mayo, Abraham Maslow
and Douglas McGregor (1906-1964), Henry
Mintzberg (1973). Developers of this
management perspective built their views on
the previous theorists as they tried to bridge
the gaps that existed in those theories.
The Behavioral Management School ……..

Studies that were conducted under the

behavioural perspective included:-
The Hawthorne Studies/experiments
Human Relations Movement
(3a) The Hawthorne Experiments

Elton Mayo’s initial interest was on fatigue,

accidents, labor turnover, rest pauses and physical
conditions of work including morale of workers. He
was interested in establishing whether these factors
can affect worker productivity.
Experiment one
This study was conducted by Elton Mayo and his
associates. Mayo was a consultant at Havard
University. Two groups of workers were used. One as
an experimental group and the other as a control
group. Illumination was manipulated for one group of
workers as illumination for the other group remained
unchanged. Productivity of both groups was observed.
(3a) The Hawthorne Experiments……..
Surprisingly, when illumination for the
experimental group was increased,
productivity went up in both groups. When
illumination was decreased, productivity
continued to go up in both groups only until
when the lighting was reduced to the level of
moonlight did productivity begin to decline.
Meaning their productivity depended on
other factors with respect to their inner
responses to the work environment.
(3a) The Hawthorne Experiments……..
Experiment Two

Another experiment on piece rate earning on

productivity resulted in workers being
productive up to a certain level as rates of pay
increased. Subsequently their productivity
remained constant. Meaning that their work
behavior was being affected by other factors
like job satisfaction, attitude towards work,
fatigue e.t.c and not only the pay they were
receiving.
(3b) The Human Relations Movement

Grew from the Hawthorne studies as

advanced by Abraham Maslow (1908-1970)
and Douglas McGregor (1906-1964) proposed
that workers respond primarily to social
context of the workplace, including social
conditioning, group norms, and interpersonal
dynamics.
A basic assumption of the human relations
movement was that the manager’s concern
for worker’s would lead to increased job
satisfaction, which would in turn result in
improved performance.
(4) The quantitative management School
This management thought emerged during
World War 11. Mathematical approaches
were applied to solve logistical problems
during the war. After the war companies such
as DuPont began to use the same
models/techniques for deploying staff,
choosing plant locations and planning
warehouses.

Two branches of quantitative management

approach are recognized as management
science and operations management
(4a) Management Science
This should not be confused with scientific
management! This approach focuses
specifically on the development of
mathematical models which are a
representation of systems, process or
relationship between variables. An emerging
description for such relationships is called
Econometric Models. Managers use such
models to forecast or predict the outcomes of
certain dependent variables by manipulating
various independent variables.
(4b) Operations Management

This is a form of applied management

science. Used more specifically on inventory
management and flight schedules. Other OP
techniques include, breakeven analysis, and
simulations in the aviation industry.
(5) The Systems Management School
A system is an interrelated set of elements
functioning as a whole. It views an
organization as a system consisting of basic
elements:- inputs, transformation processes,
outputs and feedback. Inputs include
material, human, financial and information
resources which are processed to produce
outputs such as goods, services, profits,
losses etc.
The environment provides feedback to the
system. This perspective argues that
managers who take advantage and build well
on these elements can often achieve
(6) The Contingency Management School
This is a recent development to management
thinking. The previous approaches to
management are considered universal
perspectives as they tried to identify “one
best way” to manage organizations. The
contingency approach or thinking suggests
that universal theories cannot be applied to
all organizations because each organization is
unique. They cannot be generalized.
This theory or perspective suggests that
appropriate managerial behavior in a given
situation depends on unique elements on that
situation.
(7) Contemporary Management School
Interest in management theory and practice
has heightened in recent years as new
challenges have emerged. Among the most
popular contributors to the
contemporary/postmodern perspective to
management include:-
Peter Senge,
Peter Senge’s vision of a learning
organization as a group of people who are
continually enhancing their capabilities to
create what they want to create has been
deeply influential.
Contemporary Management School……
Peter Senge
Five Disciplines Model
Systems Thinking
Personal Mastery
Mental Models
Building Shared Vision
Team Learning
Contemporary Management School….

Steven Covey,
• Seven (7) Habits Of Highly Effective People
• Leading at the speed of trust.
Tom Peters
In search of excellence
Michael Porter,
Strategic Management
PART 3
The Contemporary Issues
(Challenges Of Management)

Stalled economy that limits growth

Competition
Management of diversity
Gender mainstreaming
Employee privacy
Flexible work schedules
The Contemporary Issues…………………….

Technological innovations
Knowledge workers
Globalization
 Social responsibility
Legislation
Corporate Governance & Ethics
Conflict of interest
c

Thank you !

“The great thing is not so much where we are coming from, but
in which direction we are heading”

(Anonymous)