You are on page 1of 26

Chapter 1

Nature of Management
This chapter introduces the concept & the elements of Management. It identifies major schools of management thought and describes how they evolved. Modern approaches are emphasized & the role of the manager is closely examined.
chapter 1 1

Administration & Management by Brech Administration that part of the


management process concerned with the institution and carrying out of procedures by which the program is laid down & communicated, and the progress of activities is regulated & checked against targets & plans. Management a social process entailing responsibility for the effective & economical planning & regulation of the operations of an enterprise, in fulfillment of a given purpose or task.

chapter 1

Concept of Management
Management may be defined as a process whereby scarce resources (human, material, & financial) are combined to achieve organizational goals. Without management, people would pursue their own objectives independently and this would lead to waste & inefficiency.
chapter 1 3

Organization
The framework of the management process as formed by the definition of:
The responsibilities by means of which the activities of the enterprise are dispersed among the ( managerial, supervisory & specialist) personnel employed in its service. The formal interrelations established among the personnel by virtue of such responsibilities. *Its purpose is to create an arrangement of positions & responsibilities through & by means of which an enterprise can carry out its work.
chapter 1 4

Development of Management Thought


The development of management thought can be considered to comprise four main periods:

Early influences The scientific management movement The human relations movement Modern influences

chapter 1

Early Influences
Ancient records in China & Greece indicate the importance of organization & administration, but do not give much insight into the principles of management. Outstanding scholars have referred to management activities in the running of city states & empires. In the period 1400 to 1450, merchants in Venice, Italy, operated various types of business organization, e.g. partnerships, trusts & holding companies. Control emerged in the form of a double-entry book-keeping system & related documentation & records. Also, there was standardization of material & systems of inventory control.
chapter 1 6

The Scientific Management Movement


In the years after 1900 conventional management practices were found to be inadequate to meet demands from the changing economic, social & technological environment. A few pioneers examined causes of inefficiency & experimented to try to find more efficient methods and procedures for control. From these basic experiments a system of management thought developed which came to be known as scientific management.

chapter 1

The Human Relations Movement


Advances in the sciences of mankind, and of behaviour as an individual and in groups, e.g. psychology, sociology, etc., have revealed a number of factors which have helped in dealing with business & industrial problems. The basis of the human relations movement was the integration of various disciplines such as industrial psychology & sociology, applied anthropology & social psychology, & was concerned with the human problems which management encountered.
chapter 1 8

Modern Influences
The United Kingdom was faced with many complex problems during World War II. Operational research teams were set up, composed of mathematicians, physicists & other scientists, who pooled their knowledge to solve problems. After the war these ideas were applied to industrial problems which could not be solved by conventional means. With the development of the electronic computer, these procedures became formalized into a management science school.
chapter 1 9

The contribution of the quantitative school was greatest in the activities of planning & control. In the essence, management science school, by its use of computers and quantitative analysis, has made it possible to consider the effect of a number of variables in an organization which may otherwise have been overlooked.
chapter 1 10

Management Science school.

Management: A SCIENCE or an ART?


It is in the formulation of principles that the science of management can be developed. A management principle distils & organizes knowledge that has been built up through experience & analysis. Management is far from being an exact science at present but, by understanding & applying accepted principles can be greatly improved. It is most probable that management will never become wholly an exact science as personal judgment will always be needed to supplement available knowledge; therefore, as a practice, management will always be an art.
chapter 1 11

Management: a PROFESSION?
The following main points seem relevant:

There must exist a body of principles, skills & techniques and specialized knowledge. There must be formal methods of acquiring training & experience. An organization should be established which forms ethical codes for the guidance & conduct of members. If the above standards are considered, then management cannot really be called a profession. There are no licenses for managers, nor is there an accepted code of ethics, but there are tendencies towards professionalization and these will undoubtedly increase.
chapter 1 12

System Approach to Management


System is an organized combination of parts which forms a complex entity, with interrelationships or interactions between the parts & between the system and the environment.
2 categories:

1. Deterministic where the behaviour can be completely determined 2. Probabilistic where the behaviour can only be estimated within degrees of likelihood.
chapter 1 13

System Approach to Management


Management System encourages one to consider the cutting across of traditional boundaries of responsibility between departments in order to appreciate the objectives of the whole organization. Distinct demarcation lines between purchasing, manufacturing, engineering, marketing, etc., may become less distinct & a revision of organization may be needed.
chapter 1 14

System Approach to Management The systems approach stresses the need for more understanding in the development of sophisticated problemsolving techniques, e.g. simulation, operations research & computerized information systems. All these aim to improve the control mechanisms of organizational systems so that they can plan for and react more effectively to changes in the environment.
chapter 1 15

Sub-system Elements of a System:


A sensing system or mechanism, to find out the situation & what is going on; An information coding system, to ensure that data are in usable from; A physical processing system, requiring two-way communication & feedback of results; A regulating & control system, based upon actual output & measurement of deviations; An information storage & retrieval system; A goal-getting or policy-making system.
chapter 1 16

Contingency Approach to Management The approach is to identify the conditions of a task (scientific school management), managerial job (administrative management school) and persons (human relations school) as parts of a complete management situation and attempt to integrate them all into a solution which is more appropriate for a specific circumstance.
chapter 1 17

ELEMENTS of MANAGEMENT
Planning referred to forecasting future circumstances & requirements, deciding objectives, making long- and short-term plans, determining policies to be followed & the standards to be set. Organizing concerned with dividing work & allocating it among groups & persons and determining their responsibilities & relations and the extent of their delegation.

chapter 1

18

ELEMENTS of MANAGEMENT
irecting involves guiding & supervising subordinates. These subordinates must be oriented into the undertakings ways, guided towards improved performance & motivated to work effectively towards enterprise goals. Controlling The activity involved checking to see that plans have been carried out & attending to any deviations.

chapter 1

19

3 Basic types of Management Skills


1. Technical Skill ability to use tools, procedures & techniques in a specialized area. 2. Human Skill ability to work with, understand & motivate people as individual or groups. 3. Conceptual Skill mental ability to coordinate & integrate all of an organizations activities, especially in the long-term decisions affecting the organization. It is needed to see the organization as a whole & recognize how the various factors in a situation are interrelated so actions taken are in the best interests if the organization.

chapter 1

20

Women in Management
Women obstacles in reaching higher levels on merits: There are not as many role models of career development for women as there are for men. Married & unmarried have to contend with the career aspirations of their partner & maybe directly involved in family responsibilities Male co-workers may discriminate against women. The policies & procedures of an organization may be very unsupportive.
chapter 1 21

Entrepreneurship
The process of bringing together creative and innovative ideas & coupling these with management & organizational skills in order to combine people, money & resources to meet an identified need and thereby create wealth.
chapter 1 22

Intrapreneurship

The term given to someone who has innovative ideas and transforms them to profitable activities within an organizational environment
chapter 1 23

TIME MANAGEMENT In the age of scientific management, methods were used to quantify the relationship between the time spent and the output achieved. Managerial Time is so expensive that every organization must benefit by examining issues of time management. Important Issues in Time Management: Nature of job Personal attributes of jobholder The context of a persons job

chapter 1

24

Excellence in Management
8 Characteristics of excellent enterprises: Has a Bias for action Learned about the needs of their customers. Promoted entrepreneurship & management autonomy Obtained productivity by paying close attention to the needs of their staff Were encouraged by the philosophy of their organizations leaders Concentrated on the business they knew best Had an organization structure that was simple with a lean staff Were organized in a centralized or decentralized manner, whichever was appropriate

chapter 1

25

Management for the future


An awareness of & ability to relate to the economic, social, and political environment. An ability to manage in a turbulent environment. An ability to manage with complex organizational structures. An ability to be innovative & initiate change. An ability to manage & utilize increasingly sophisticated information systems. An ability to manage people with widely different & changing values and expectations.

chapter 1

26

You might also like