Lecture objectives

At the end of this lecture you should be able to:

1. Define the concept of management
2. Describe the characteristics of management
3. State the functions of management
4. Explain the skills of a manager
5. Discuss the roles of management
6. Identify the components of the management environment
7. Discuss how management can respond to a changing environment.

1.3 The meaning of management

Management has been defined in many different ways by different authors. Here is a
sample: -
• Management is the art of getting things done through and with people in formally
organized groups.(Haimann, T.)
• Management is simply the process of decision-making and control over the actions of
human beings for the express purpose of attaining predetermined goals.(Vance S.)
• Management is a social process entailing responsibility for the effective and
economical planning and regulations of the operations of an enterprise in fulfillment
of a given purpose or task (Brech E. F., 1957).
• Management is the coordination of all resources through the process of planning,
organizing, directing and controlling in order to attain a given stated objective (Fayol
H. 1916; & Koontz and O’Donnel, 1976)

From the above range of definitions, it is obvious that management is a complex process
with many facets/elements/dimensions.
 ü Management is both a social and technical process that
comprises a series of actions that lead to the accomplishment
of objectives.
ü It is a process by which the resources of production are
transformed from just “resources” to “production” (Peter
Drucker).
ü It requires a combination of technical, human and conceptual
skills
ü Managers are resources or assets in organizations

Activity 1.1

Write your own definition of management

1.4 Characteristics of Management:

To further enhance our understanding of the term management, we shall now examine
some of its major characteristics.

(i) Management is an activity.

Management is an activity that concerns the effective use of all resources both
human and non-human. It is the driving force that inspires an undertaking. It
creates the conditions and relationships that bring about the full use of resources.
(ii) Management is Purposeful and goal-oriented.
The main concern of management is the achievement of clearly defined goals or
objectives. Management is said to be successful only to the extent to which these
objectives are achieved.
(iii) Management is a Social Process
Organizations are social entities, as they are constituted of people. As such,
management has to control, organize and motivate people and create a favourable
climate for their development.
(iv) Management is getting things done.
A manager does not usually do the operating work himself, but gets the work
done with and through people. A manager has to direct people, harness talents
through training and procure technical, human, and psychological skills
(intellectual capital).
(vi) Management is an intangible force.
Though intangible, management is not abstract but a social skill which is evident
by the quality of the organization in terms of the efficiency and effectiveness of
its operations.
(vii) Management is an Integrating Process.
Management brings together people, machines and materials to carry out the
operation of the organization and achieve a set of given objectives. It is a result-
oriented process.
(viii) Management is separate from ownership.
Management and ownership may be the same in small family or individual or sole
proprietorship businesses, but in modern enterprises or corporations, a vast number of
shareholders own the business enterprise or organization, while management is in the
hands of qualified, professional and competent managers, who normally do not
posses any ownership interest.
(ix) Management is a Universal Activity
The techniques and tools of management are universally applicable. Managers
perform the same functions regardless of their position in the management hierarchy,
type of enterprise or location of enterprise.
(x) Management is a social science
The science of management is universally accepted as a distinct discipline. It has
assumed professional character, hence requiring the use of specific knowledge, skill
 and practice. It utilizes certain fundamental concepts, theories, tools and techniques
that constitute the subject matter of management. It therefore satisfies all the
conditions of a profession.

1.5 The art and science of management

Management can be said to be both a science and an art. First, it is a science because it is
based on a set of organized knowledge founded on proper scientific findings and exact
principles. It is part of the branch of science known as social science just like sociology,
economics or history. The other branches of science are physical science, biological
science etc. Management is also a behavioral science in which its theories and principles
are based on the situation.

Management can also be an art. An art refers to the best way of doing something.
Management can be said to be the process of directing scientific knowledge to the
accomplishment of objectives. Like any other art, management is creative, develops new
situations, new designs and new systems needed to improve performance. Art therefore
is the ‘know-how’ or ‘technique’ to achieve a desired result. The most productive art is
always based on an understanding of the science underlying it.

Art and science therefore are not mutually exclusive but are complementary. As science
improves, so should art. As Koontz and O’Donnell point out ‘physicians without a
knowledge of science become witchdoctors, but with science, they become skillful, artful
surgeons.’ Therefore, managers who operate without scientific knowledge (in the form of
theory) can only trust in luck, intuition, common sense and experience (which may be
wrong experience). However, in utilizing theory and science, managers must learn to
blend knowledge (principles) and practice to achieve desired results.

1.4 The Scientific Method in Management.

The purpose of science is to explain phenomena. Science is based on the belief that
relationships can be found between two or more sets of events. The scientific method
involves determining facts through observation of events and verifying their accuracy
 through continued observation. After classifying and analyzing the facts observed,
scientists establish causal relationships known as hypotheses that they test for accuracy.
When hypotheses are supported, and are found to explain or predict reality they become
principles. However, principles are not permanent they can still be challenged by future
research and analysis and either modified or discarded.

Principles, Theory and Concepts: Principles, theory and concepts form the structural
framework of a science.
Principles are fundamental truths or what are believed to be truths at a given
time, explaining relationships between two or more sets of variables.
For example: Motivation has a positive effect on the performance of employees.
Theory is a systematic grouping of interrelated principles. It ties together significant
knowledge to form a framework.

For example, the theory of attribution which explains the behaviour of an individual on
the basis of whether it was caused by an external or an internal influence. Internal causes
are those believed to be under the personal control of the individual while external causes
are those believed to be beyond the control of the individual. These are judged on the
basis of distinctiveness, consensus and consistency.

Concepts are mental images of something formed by generalization from particulars.

Concepts are the building blocks of theory and principles. However, they tend to always
imply different things to different people. For example concepts such as: management,
organization, technology, labour etc.

1.5 The basic functions of management

The job of management is to help an organization make the best use of its resources to achieve
its goals. They do so by performing essential managerial functions which include:
§ Planning
§ Organizing
§ Directing
 § Staffing
§ Controlling
Planning: It is the process of setting goals and objectives and showing how these goals and
objectives will be accomplished.
Organizing: This refers to the process of establishing a structure of working relationships. It
involves grouping people into departments according to specific tasks performed and deciding
how best to coordinate organizational resources.
Directing: This is the process of communicating what has been planned by leading and
motivating the efforts of people towards attainment of goals
Staffing: This function refers to the process of filling positions with the right kind of people in
the right job at the right time.
Controlling: This refers to the process of evaluating how well an organization is achieving its
goals and how to maintain and improve performance.
Figure 1 below illustrates the relationships among these functions. It indicates that all the
functions are interdependent.

Figure 1: Interdependence among managerial functions

1.6 Managerial roles
Managers play several management roles: a role is a set of specific tasks that a person is
expected to perform in the position they hold. According to Henry Mintzberg, managers play
three major roles:
i) Interpersonal roles:
§ Figurehead – a manager a representation or a symbol of the organization. They determine
the direction or mission of the organization. They inform stakeholders such as employees
about what the organization is seeking to achieve. They put up appearances on behalf of
the organization eg receiving guests at the workplace or attending an employee’s
wedding.
§ Leader – a manager occupies a position of influence, hence has to inspire and encourage
others to perform. They train, coach, counsel and mentor subordinates to reach their full
potential
§ Liason – managers are the link between the organization and the larger society. They deal
with people outside the organization such as suppliers and customers and inside by
coordinating the activities of people in different departments.
ii) Informational roles: These roles are closely associated with the tasks necessary to
obtain and transmit and transmit information. The roles are:
§ Monitor – managers analyze information from inside and outside the organization
so that he can effectively control and organize people and other resources.
§ Disseminator – Managers transmit information to other members in the
organization so as to influence their work attitudes and behaviour
§ Spokesperson – managers use information to promote the organization so that
people inside and outside the organization can respond positively to it
iii) Decisional roles: managers plan and lay strategies for achieving goals and utilizing
resources. They act as:
§ Entrepreneurs: Managers decide which projects or programmes to initiate and
how to invest resources to increase organizational performance
§ Disturbance handler: managers assume responsibility for handling unexpected
events or crisis that threatens the organizations access to resources. In this
 situation a manager also assumes the roles of figurehead and leader to mobilize
employees to help secure the resources needed to avert the problem.
§ Resource allocator: managers decide how best to use available resources to
increase organizational performance.
§ Negotiator: managers work out agreements and contracts that will operate in the
best interest of the organization.
The relationships among these roles are illustrated in figure 2 below.
Figure 2: Illustration of managerial roles
Figurehead

Interpersonal Leader
roles
Liason

Monitor

Informational
roles Disseminator

Spokesperson

Decisional Entrepreneurs
roles
Disturbance
handler

Resource allocator

Negotiator
1.1 Managerial skills

Skills is what separates good managers from ordinary managers. Education and experience
enable managers to develop the skills they need to put organizational resources to their best use.
There are three types of skills:
i. Technical skills: These are needed to perform specialized tasks. They involve the
ability to use knowledge, methods, techniques and equipment necessary for the
performance of specific tasks. These skills are acquired from experience, education
and training. They are more useful for lower level management at supervisory
levels because they train others in the actual job.
ii. Human skills: The ability to work with and through people including understanding
of motivation and application of effective leadership. Also includes the ability to
mould individuals into a cohesive team. Human skills are useful for middle
managers as they link the top and the lower levels of employees.
iii. Conceptual skills: This skill is demonstrated in the ability to analyze and diagnose a
situation and to distinguish between cause and effect. Involves understanding the
complexities of the overall organization and the various variables that influence its
operations. It is about seeing the ‘big picture’.

The appropriate mix of these skills varies as an individual advances in management

from supervisory to top management positions. The relationship between
management level and skills needed is illustrated below.
 Management Skills needed
level

Executive……
Conceptual
skills
Managerial……

Human skills

Supervisory….. Technical
skills

Figure 1: Managerial roles

More conceptual skills are needed at executive levels as executives should be able to see how all
operative functions are interrelated in accomplishing organizational goals. Their focus is external
and global. Human skills are therefore crucial to all levels of management as attested by the
following statement:

“I will pay more for the ability to deal with people than any other ability under the sun”
(John D. Rockeffeler, American entrepreneur).

In other surveys, human skill has been rated higher than intelligence, decisiveness and
knowledge and job skills.

1.9 Importance of Management Knowledge

Knowledge of the basic principles and techniques of management is important for a number of
reasons.
(i) To increase efficiency.
Development and use of management principles improves managerial efficiency.
Managers can apply established guidelines to help solve problems without having
to resort to trial and error – which is risky and costly to the organization.

Although experience is important, it is not enough as no two situations or

problems are the same nor can be solved using the same methods. Hence an
understanding of management theory, principles and concepts allows the manager
to see and understand what otherwise would remain unseen. Awareness of
management principles helps managers avoid mistakes.

(ii) To understand the nature of management.

An understanding of the concepts, principles and techniques of management
enables managers to analyze the managerial job and train others. The knowledge
of these fundamentals acts as a checklist of the meaning of management. With
the accumulation of management knowledge, management training is simplified.

(iii) To achieve social goals.

Development of management knowledge and its skillful use in the management of
people and material resources can have a revolutionary impact on society.

For example, it is observed that nations with high levels of material standards of
living tend to have high levels of knowledge and skill in the management of
business. Management has a social responsibility in addition to making profit.
They oversee the operation of the economic systems that fulfills the expectations
of the public such as safeguarding shareholders investment, providing a
reasonable return, keeping employees satisfied and contented by ensuring
payment of fair wages, good working conditions and security of employment.
 Management is also responsible for customers’ needs e.g. quality goods and
services.

To the State, it is the major source of income through taxes hence the business
must be conducted in accordance with state policy. It also has responsibility to
the society by maintenance of ethical behaviour. It should also be innovative and
creative to produce goods and services for the increased comfort of mankind. It is
management knowledge therefore that enables these multidimensional
responsibilities of management to be achieved.

The key to successful management is the ability to identify the

right things to be done (effectiveness) and to concentrate
resources on them (efficiency)
Using examples, identify the consequences of poor
management to: employees, customers/clients, suppliers,
government and society

1.10 Environmental influences on management

Although most of a manager’s time is spent in interactions with subordinates inside the
organization, the manager must also deal with issues in the external environment. These consist
of the micro, market and macro environments.

2.1 Composition of the Management Environment

The environmental concept refers to the sum total of the factors or variables that may influence
the continued existence of an organization. They may be factors inside or outside the
organization. An organization does not exist in a vacuum, but in an environment that provides
resources and limitations. To remain prosperous, therefore, it must continually adapt to its
environment, which is constantly changing.
An organization and its environment are interdependent. The environment provides resources
and feedback to the organization and it, in turn, produces the goods and services required by the
environment.

An organization exists only for as long as activities are

desired and supported by the environment. The
environment is made up of threats, opportunities
limitations and resources.

1.11 Types of environments

i) Micro environment
This consists of the organization itself:
o The mission, goals, objectives and strategies of the organization.
o The organization and its management
o The resources of the organization e.g. employees, capital, finance, etc
o The organizational culture.

ii) Market environment

This is the environment that surrounds the organization also known as the competitive or
industry and comprises of:
§ Consumers, their needs, purchasing power and behaviour.
§ Suppliers of materials, capital and labour
§ Intermediaries e.g. wholesalers and retailers, commercial agents and brokers, banks
etc.
§ Competitors e.g. new entrants, existing competitors, availability of substitute products
or services and the bargaining power of clients, consumers and suppliers.

iii) Macro environment

Is that which exists outside the organization. It comprises:
 § Technological environment: responsible for accelerating change and innovation and
creating opportunities and threats in the environment.
§ Economic environment: responsible for change in the environment because of
changes in economic growth rate, levels of unemployment, consumer income, rate of
inflation and the exchange rate.
§ Socio-cultural environment: referring to changes in value systems, family structures,
education, attitudes, ethics, workforce diversity, etc.
§ Ecological/physical environment: is concerned with the natural resources from
which the organization derives its raw materials and the environment on which the
organization discharges its waste.
§ The political-governmental environment: refers to the government and its influence
on the organization, e.g. in terms of political risk, legal matters, government
expenditure etc.
§ The international environment: comprises of the factors emanating from other
countries with which the organization directly or indirectly has business relations.

An organization can therefore be said to be an open system because it is dependent on the

environment in which it operates. (A closed system can exist independently). There is specific
interaction between the system and the environment.
Ways in which management can react to the Environment.

• Environmental scanning: refers to the measuring, projection and evaluation of

change in the environment. Organizations management information systems
should make provision for this.
• Strategy response: This may include changes in present strategy or formulation of
new strategies.
• Structural Change: The organization structure can be redesigned, adapted or
modified as a response to changes in the environment e.g. a flexible vs.
bureaucratic structure, integration vs. differentiation, decentralized vs. centralize
etc.
• Cultural change: change the organizational culture from closed to open etc.
2.4 Resistance to change.

1. Time consuming and expensive. Planning is hence neglected in favour of short-term

activities.

Avoiding barriers to planning

1. Start at the top – to ensure commitment top managers should set the goals and strategies
that lower level managers will follow
2. Planners should recognize limits – no planning system is perfect
3. Communication – vertical communication within the organizational hierarchy
4. Participation – involvement leads to motivation and ownership of the plans
1. Integration – of the long-term, intermediate and short-range plans must be properly
integrated for effective overall planning
2. Contingency planning – develop alternative plans of action if conditions change
3. Planning must not be left to chance
4. Planning must be organized
5. Goals, strategies and policies must be communicated clearly
6. Planning must include awareness and acceptance of change