COURSE TITLE: PRINCIPLE AND PRACTISE OF

MANAGEMENT
THE COURSE OUTLINE FOR THE PRINCIPLES OF MANAGEMENT
General Objective: the learner should be able to distinguish management from other
disciplines and be able to indicate position that management plays in organizations and
the country at large

WEEK ONE
1.0 Management
1.1 Definition of Management
1.2 History of Management
1.3 Management as a Science
1.4 Management as an Art

WEEK TWO
2.0 Approaches to Management
2.1 Classical Approach
2.2 Behavioral Approach
2.3 Managerial Roles Approach
2.4 Systems Approach

WEEK THREE
3.0 Theories of Management

WEEK FOUR
4.0 Functions of Management
4.1 Planning
4.2 Elements of Planning
4.3 Importance of planning
4.4 Principles of Planning
4.5 Types of Plans

I
 4.6 Steps in the Planning Process
4.7 Limitations of planning
4.8 How to Overcome the Planning Problems?
4.9 Strategies Applied by Organizations

WEEK FIVE
5.0 Organizing
5.1 Principles of Organizing
5.1.1 Factors influencing the Span of Control
5.2 Types of Organizational Structures
5.3 Types of Power

WEEK SIX
6.1 Controlling
6.2 Objectives of Controlling
6.3 Characteristics of Controlling
6.5 Importance of Controlling

WEEK SEVEN
7 Leadership
7.1 Leadership Roles
7.2 Attributes of a Leader
7.3 Characteristics of successful Leaders
7.4 Theories of Leadership

WEEK EIGHT
8 Group Formation
8.1 Types of Groups
8.2 Group Formation
8.2.1 Factors that influences Group Formation 8.3
Stages of Group Development

ii
WEEK NINE
9 Organizational Culture and Development
9.1 Elements of Organizational Culture
9.2 Types of Organizational Culture
9.3 Organizational Development
9.4 Characteristics of Organizational Development
9.5 Goals of Organizational Development
9.6 The Process of Organizational Development

WEEK TEN
10.0 Human Resource Planning and Management
10.1 Human Resource Planning
10.2 Importance of Human Resource Planning
10.3 Barriers to human Resource Planning
10.4 Principles of Human Resource Management
10.5 The Concerns of Human Resource Management
10.6 Management by Objectives
10.6.1 How MBO works

WEEK ELEVEN
11.0 Staff Motivation
11.1 Reasons for Motivation
11.3 The Role of Non-Financial Incentives

WEEK TWELVE
12.0 Supervision, Leading and Controlling
12.1 Principles of Supervision
12.2 Roles of Supervision
12.3 Types of Supervisors
12.4 Coordination
12.4.1 Characteristics of Coordination
12.4.2 Principles of Coordination

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12.4. 3 Advantages of Coordination
12.5 Techniques of Coordination

WEEK THIRTEEN
13.0 Staffing
13.1 Steps in Staffing Process
13.1.1 Job Analysis
13.1.2 Limitations of Job Analysis
13.2 Recruitment
13.2.1 Internal Recruitment Methods
13.2.2 External recruitment Methods
13.3 Selection
13.4 Retention

WEEK FOURTEEN
14.0 Decision Making Process
14.1 Characteristics of Decision Making
14.2 Types of Decisions
14.3 Steps in Decision Making
14.4 Barriers to Effective Decision Making
14.5 How to Overcome the Decision Making
Problems?

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PRINCIPLES OF MANAGEMENT CAT WEEK SEVEN
ANSWER ALL QUESTIONS

1. Management is both a science and an art. Give reasons why management is an

INEXACT science?
2. Discuss the managerial roles approach as given by Prof. Henry Mintzberg
3. Discuss the application of modern theory of management by Henry Fayol
4. Nelson Mandela is among the successful leaders in Africa. What are the some of
the characteristics of successful leaders

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TABLE OF CONTENTS

THE COURSE OUTLINE FOR THE PRINCIPLES OF MANAGEMENT .......................... I

TOPIC ONE ............................................................................................................................................... 1
1.0 MANAGEMENT ............................................................................................................................. 1

1.1 Definition of Management .............................................................................................................. 1

1.2 HISTORY OF MANAGEMENT ................................................................................................ 2
1.3 MANAGEMENT AS A SCIENCE ............................................................................................. 3
1.4 MANAGEMENT AS AN ART .................................................................................................... 4
TOPIC TWO ............................................................................................................................................ 5
2.0 APPROACHES TO MANAGEMENT ................................................................................... 5
2.1 CLASSICAL APPROACH (managing work and organization) ........................................ 5
2.2 BEHAVIOURAL APPROACH (managing people) ............................................................... 5
2.3 MANAGERIAL ROLES APPROACH ...................................................................................... 6
2.4 SYSTEMS APPROACH................................................................................................................. 6
TOPIC THREE ...................................................................................................................................... 8
3,0 THEORIES OF MANAGEMENT ........................................................................................... 8

3.1 SCIENTIFIC THEORY OF MANAGEMENT ........................................................................ 8

3.2 MODERN/ADMINISTRATIVE THEORY OF MANAGEMENT ................................ 10
3.3 BUREAUCRATIC THEORY OF MANAGEMENT ..........................................................13
TOPIC FOUR ........................................................................................................................................16
4.0 FUNCTIONS OF MANAGEMENT ......................................................................................16

4.1 PLANNING ..................................................................................................................................... 16

4.2 ELEMENTS OF PLANNING / CHARACTERISTICS ......................................................16
4.3 IMPORTANCE OF PLANNING ...............................................................................................17
4.4 PRINCIPLES OF PLANNING ...................................................................................................18
4.5 TYPES OF PLANS.........................................................................................................................18
4.6 STEPS IN PLANNING .................................................................................................................19

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4.7 LIMITATIONS OF PLANNING ...............................................................................................20
4.8 HOW TO OVERCOME PLANNING PROBLEMS ........................................................... 21
4.9 STRATEGIES APPLIED BY ORGANIZATIONS .............................................................21
TOPIC FIVE ......................................................................................................................................... 23
5.0 ORGANIZING .............................................................................................................................. 23

5.1 PRINCIPLES of ORGANIZING ................................................................................................23

5.2 TYPES OF ORGANISATIONAL STRUCTURES ..............................................................25
5.2.1 FUNCTIONAL STRUCTURE ............................................................................................... 25
5.2.2 PRODUCT – LINE STRUCTURE ....................................................................................... 26
5.2.3 GEOGRAPHICAL – BASED STRUCTURE .................................................................... 27
5.2.4 MATRIX OR ORGANIC STRUCTURE .............................................................................27
5.2.5 Customer based structures ........................................................................................................ 29
5.2.5 CENTRALIZATION AND DECENTRALIZATION..................................................... 30
5.3 FORMS / BASIS OF POWER ....................................................................................................30
TOPIC SIX..............................................................................................................................................32
6.0 CONTROLLING ......................................................................................................................... 32
6.1 INTRODUCTION: .........................................................................................................................32
6.2 OBJECTIVES OF CONTROLLING ........................................................................................32
6.3 CHARACTERISTICS OF CONTROLLING .........................................................................32
6.4 STEPS TO BE FOLLOWED IN CONTROLLING ............................................................ 33
6.5 IMPORTANCE OF CONTROLLING .....................................................................................34
TOPIC SEVEN ......................................................................................................................................35
7.0 LEADERSHIP ................................................................................................................................35

7.1 LEADERSHIP ROLES .................................................................................................................35

7.2 ATTRIBUTES OF A LEADER ..................................................................................................36
7.3 CHARACTERISTICS OF SUCCESSFUL LEADERS.......................................................36
7.4 THEORIES OF LEADERSHIP ..................................................................................................37

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7.5 LEADERSHIP STYLES ...............................................................................................................39
TOPIC EIGHT ......................................................................................................................................42
8.0 GROUP FORMATION ..............................................................................................................42

8.1 TYPES OF GROUPS .....................................................................................................................42

8.2 GROUP FORMATION .................................................................................................................43
8.3 STAGES OF GROUP DEVELOPMENT ................................................................................44
8.4 GROUP COHESIVENESS ..........................................................................................................44
TOPIC NINE ......................................................................................................................................... 47
9.0 ORGANIZATIONAL CULTURE AND DEVELOPMENT .......................................47

9.1 ELEMENTS OF ORGANIZATIONAL CULTURE ............................................................47

9.2 TYPES OF ORGANIZATIONAL CULTURE ......................................................................48
9.3 ORGANIZATIONAL DEVELOPMENT ............................................................................... 48
9.4 CHARACTERISTICS OF AN ORGANIZATION DEVELOPMENT ..........................48
9.5 GOALS OF ORGANIZATIONAL DEVELOPMENT ...................................................... 49
9.6 PROCESS OF ORGANIZATIONAL DEVELOPMENT PROGRAM ..........................49
TOPIC TEN ............................................................................................................................................51
10. HUMAN RESOURCE PLANNING AND MANAGEMENT .....................................51

10.1 HUMAN RESOURCE PLANNING ...................................................................................... 51

10.2 IMPORTANCE OF HR PLANNING .................................................................................... 51
10.3 BARRIERS TO HUMAN RESOURCE PLANNING .......................................................52
10.4 PRINCIPLES OF HUMAN RESOURCE MANAGEMENT .........................................52
10.5 THE CONCERNS OF HUMAN RESOURCE MANAGEMENT ................................53
10.6 MANAGEMENT BY OBJECTIVES (MBO) ......................................................................53
TOPIC ELEVEN ..................................................................................................................................56
11.0 STAFF MOTIVATION ........................................................................................................... 56

11.1 REASONS FOR MOTIVATION.............................................................................................56

11.2 HOW TO MOTIVATE .............................................................................................................. 56

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11.3 THE ROLE OF NON FINANCIAL INCENTIVES.......................................................... 57
TOPIC TWELVE.................................................................................................................................60
12.0 SUPERVISION / LEADING AND CONTROLLING .................................................60

12.1 PRINCIPLES / QUALITIES OF SUPERVISION ..............................................................60

12.2 ROLES OF A SUPERVISOR .................................................................................................. 61
12.3 TYPES OF SUPERVISOR’S ....................................................................................................61
12.4 CO-ORDINATION ......................................................................................................................62
12.5 TECHNIQUES OR METHODS OF CO-ORDINATION ................................................63
TOPIC THIRTEEN ........................................................................................................................... 65
13.0 STAFFING ....................................................................................................................................65

13.1 STEPE IN STAFFING PROCESS ..........................................................................................65

13.2 RECRUITMENT ..........................................................................................................................66
13.3 SELECTION ..................................................................................................................................68
13.4 RETENTION..................................................................................................................................69
TOPIC FOURTEEN .......................................................................................................................... 70
14.0 THE DECISION MAKING PROCESS ............................................................................70

14.1 CHARACTERISTICS OF DECISION MAKING .............................................................70

14.2 TYPES OF DECISIONS ............................................................................................................70
14.3 STEPS IN THE DECISION MAKING PROCESS ........................................................... 71
14.4 BARRIERS TO EFFECTIVE DECISION MAKING .......................................................72
14.5 HOW TO AVOID THE DECISION MAKING PROBLEMS ....................................... 72
SAMPLE PAPER ................................................................................................................................ 74

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TOPIC ONE

1.0 MANAGEMENT

By the end of this chapter the learner should be able to:

a) define management
b) trace the history of management
c) state and explain the approaches to management
d) distinguish between management being an art and a science

1.1 Definition of Management

1. Management is the process undertaken by one or more individuals to coordinate
the activities of others to achieve results not achievable by one individual acting
alone.
2. Management is a process of designing and maintaining an environment in which
individuals working together in groups efficiently to accomplish the desired goals.
This definition can be expanded as follows:
a) Managers carry out the management functions of planning, organizing, staffing,
leading and controlling
Planning is defining the future state of the department or organization
Organizing is Putting similar tasks together to form a department Staffing –
Identifying who should do the tasks that are already identified Leading –
Showing them how to do what they should do
Controlling – Setting targets and objectives that should be pursued by the staff b)
Management applies to any kind of organization
c) Management applies to managers at all organizational levels

1
- Strategic decisions (CEO etc.)
- Tactical decisions (Departmental heads) - Operational decisions (Supervisors)

d) Management is concerned with effectiveness and efficiency (to be effective is to do

right things and to be efficient is to do it correctly).

3. M.P Follet defines Management as an art of getting things done through other
people. In it, managers achieve organizational goals by enabling others to perform
rather than performing the tasks by themselves. This is done through delegation,
communication and empowerment

4. J.F. Stonner defines Management as the process of planning, organizing, staffing,

leading and controlling the efforts of workers and of using organizational resources. The
definition suggests
a) Management is a continuous process
b) Several interrelated activities have to be performed by managers irrespective
of their levels, to achieve desired goals.
c) Managers use resources of the organization both physical as well as human,
to achieve the goals of the company.
d) Management aims at ensuring for effective use of organizational resources.

1.2 HISTORY OF MANAGEMENT

1. The practice of management is as old as human civilization.
2. The progress of mankind over the centuries is attributed to the effective management of
resources.
3. The irrigation systems, existence of public utilities, constructions of monuments
e.g. Egyptian pyramids, Taj Mahal in India, demonstrates the practice of management
in olden days.

2
4.The ancient civilization of Mesopotamia, Greece, Rome and Indus valley, displays the
results of good management practices.
NB: The study of management in a systematic way as a distinct body of knowledge, is
only of recent origin. It is therefore said that management is described as “oldest of the
Arts and youngest of the sciences”.

1.3 MANAGEMENT AS A SCIENCE

For any branch of knowledge to be considered a science, it should fulfill the following:
a). Should have a systematic body of knowledge with its own principles (independent).
b). The principles have to be evolved on the basis of constant inquiry and examination
(research).
c). The principles must explain a phenomenon by establishing a cause-effect
relationship. d). The principles should be available for verification to be universally
acceptable. Management as a discipline fulfills the above because:
i) It has emerged as a systematic body of knowledge with its own principles.
ii) The application of these principles helps any practicing manager to achieve
the desired goals.
iii) (Management is dynamic because it has borrowed heavily form other
disciplines to help solve management problems, disciplines e.g.
Psychology, Sociology, Philosophy, Religion, Economics.

NB: Management cannot be viewed as an exact science but rather inexact science
because of the following: -
i) By definition, management involves getting things done through other people
who are unique in respect of aspirations, attitudes, perceptions etc.
Their differences are so obvious that standard results may not be achieved in
otherwise similar environment.
ii) The behavior of human beings cannot be predicted accurately and therefore
standards and readymade solutions cannot be prescribed.
iii) Management is concerned with the future which is complex and unpredictable so
that if there are changes in the environment, the management plans will be

3
affected.
iv) Management plans are prone to change due to the changes in the external
environment e.g. Technological changes, economic and socio-cultural changes.

1.4 MANAGEMENT AS AN ART

i) The word Art refers to the know how or ways of doing to accomplish the
desired results.
ii) The focus is on the skill with which the activities are performed.
iii) The constant practice of the theoretical concept (knowledge base)
contributes to the formation and sharpening of skills.
iv) Management as an art stresses the need for practice where in
management graduate from the best institute may not be very effective
and therefore requires creativity and practice.

Revision questions
a) Give various definitions of management
b) Management is as old as human civilization. justify this statement
c) Give reasons to show why management is inexact science and not an exact

science

Further Reading
1. George Terry and Stephen g. franklin, “Principles of management”, (AITBs, Delhi
1998)
2. Arthur G. Berden,” Management”, Dryolen Press New York, 1993)

4
TOPIC TWO

2.0 APPROACHES TO MANAGEMENT

By the end of this chapter the learner should be able:

a) To describe the various approaches to management
b) To indicate how each approach is important in management

An approach is a school of thought where the members share in a common belief.

2.1 CLASSICAL APPROACH (managing work and organization)

It was the first attempt to study modern management when managers were seeking
answers to the basic and practical questions e.g. How to increase efficiency and
productivity? Their concern was not about workers, but work in terms of tools and
equipment. The second concern was about the organization which was to provide the
necessary guidelines including procedures, policies, plans, methods etc.

2.2 BEHAVIOURAL APPROACH (managing people)

It was developed because the classical approach could not achieve the total efficiency and
work place harmony.
The behavioral approach uses the concept of psychology, sociology, philosophy, religion,
economics etc., to help managers understand the human behavior at work place.
The emphasis in this approach is on the interrelationship workers, work and the
organization.

For work place harmony to be realized, the following was recommended: -

(a). Motivation – The worker’s performance will increase if they are motivated
and managers should give it a lot of concern.
(b). Communication – The organization should have open channels of communication for

5
free flow of information vertically and horizontally.
(c). Formation of groups – Workers should be allowed to form and join social groups
to advance their interest. The managers should not condemn them but reach out to the
perceived leaders of such groups for help.

2.3 MANAGERIAL ROLES APPROACH

It was developed by Prof. Henry Mintzberg after studying 5 Chief Executive Officers,
and came to conclusion that managers do not only perform the classical functions. They
engage in a variety of other activities like: -

(a). Figure head roles

Just the presence of the manager is enough. When the manager is around, everything is
okay.
Leader role – a leader influence other into action.
Liaison –a leader negotiates on behalf of the workers and the department

(b) Information Roles

Recipient role - receives information on behalf off.
Dissemination role – passes the information received to others
Spokesperson role – speaks on behalf off

(c). Decision Roles

Entrepreneur role -seeks opportunities for the company
Disturbance handling role-settles disputes and dispenses justice
Negotiator role-negotiates on behalf off
Resource allocator role- makes decisions on the use of the company’s resources

2.4 SYSTEMS APPROACH

This is a way of thinking about the management's problems because one part or
department influences the other and therefore managers should not deal with individual
parts but instead deal with the entire organization.

6
The organization being dynamic, the managers must anticipate the intended as well as
unintended impacts of their decisions.
Managers in this approach therefore, do not deal with individual departments, but
the entire company / organization.

Revision questions
i. What are the main features of managerial roles approach?
ii. What were the recommendations of the behaviouralists?
iii. Indicate how managers prepare to fit into the contingency approach

Further reading:
1. Bernard M. Bass, ‘organizational decision making” Homewood, III: Richard Irvin
1983 2. Richard m. Hodgers,” Management Theory, Process and Practice”, Academic
Press, New York 1990

7
TOPIC THREE

3,0 THEORIES OF MANAGEMENT

By the end of this topic the learner should be able:

a. To fully explain the different theories of management
b. To discuss the relevance of modern theory of management
c. To identify the disadvantages of bureaucratic theory of management

3.1 SCIENTIFIC THEORY OF MANAGEMENT

It was founded by Fredrick Taylor and it puts emphasis on scientific thinking where
managers MUST give justification for decision making.
The aim of the theory was to change the attitude of the employees and the managers
towards one another and work.

Objectives of the Theory

i) To use a lot of skills and knowledge in the production process.
ii) To revolutionize the whole process of production and marketing by having
professionals in charge.
iii) To standardize the plans, tools, materials and working conditions in order to
increase production.
iv) To reduce the possibility of slackness in production as a result of accidents.
v) To help the workers through proper guidance.
vi) To increase the level of wages, profits and customer service to the highest levels.

Principles of the Theory

(I). The principles of task idea
It states that favorable conditions at work will make the workers to perform miracles and
increase productivity.
(ii). The principle of standardization

8
According to this principle, the work activities and method of production should be
uniform to avoid biasness so as to achieve the quality product/service.
(iii). The principle of selection and training
It states that proper policies and guidelines be formulated to ensure that only qualified
personnel are employed and those without the skills be trained.
(iv). The principle of division of work
It states that division of work should be undertaken because it leads to specialization
which further leads to increased production.
(v). The principle of proper use of plant
It states that the organization's resources both human as well as physical should be put
to proper use. The managers should minimize their misuse.
(vi). The principle of planning
- It states that planning should be the first function for any manager because it helps to
achieve the organizational goals with ease and without conflicts.
(vii). The principle of healthy working environment.
It states that the work environment should be worker friendly so as to achieve
quality output.
(viii) The principle of incentives
It states that the organization should their employee’s reasonable salaries.

Advantages of the theory

(I). Uniformity
It gave birth to standardization of tools, working methods etc. which led to uniformity.
(ii). Incentives
Because of incentives, the worker’s performance increased
greatly. (iii). Wastage
It reduced the level of wastage in production process through scientific selection and
training.
(iv). It puts emphasis on better utilization of available organization's resources.
(v). The system provides for the satisfaction of the needs of the customers by providing
high quality product/services at lower prices.

9
(vi). It puts emphasis on good harmonious relationships between workers
and management.
(vii). It puts emphasis on proper selection, training and promotion of employees.
(viii). It has led to specialization which in turn led to increased productivity and job
satisfaction.

Disadvantages of the theory

1. It puts a lot of emphasis on employee incentives but less on compensation in an event
of an accident.
2. It has overlooked the human desire for job satisfaction.
3. It assumes the social needs of workers such as forming and joining a trade union,
welfare society etc.
4. The techniques of scientific management dehumanize the workers by making them to
work like mindless machines.
5. It rules out any bargaining about wages by emphasizing on the manager setting
salaries and wages.
6. It gives too much power to managers which cause conflict and resistance.

3.2 MODERN/ADMINISTRATIVE THEORY OF MANAGEMENT.

It was formulated by H. Fayol, who said that managers who follow general principles of
management and good management practices achieve the highest productivity.

Principles of Management
1. Principle of division of labor
According to it, when division of labor is allowed, it leads to specialization of workers
which further leads to increased productivity and job satisfaction.

2. The principle of authority and responsibility

It states that for a manager to get work done in his/her development, she/he must
adequately be authorized to be able to control the activities of the development. The

10
manager is equally held responsible and answerable to the proper use of the authority.

3. The principle of discipline

It states that discipline is at the very core of administration and that managers should be
disciplined first before they can think of disciplining the subordinate.

4. The principle of unity of command

It states that commands should be well planned and thought out. Subordinate should not
take instructions from more than one because they will be confused and frustrated.

5. The principle of unity of management

It states that tasks that are similar should be placed under one manager for easy control.

6. The principle of suitable and adequate payment of personnel

It states that workers should be paid a better salary at the market rate so as to perpetuate
their race. This boosts their morale and efficiency.

7. The principle of centralization

It states that power and authority should be put in the hands of few so that the image
and culture of the company can be maintained and also control the type of decisions to
be taken.

8. The principle of subordination of individual interests

It states that workers of an organization should be able to sacrifice their interests and
goals for the sake of organizational goals and objectives.

9. The principle of chain of communication.

It states that an organization should have open channels of communication for free flow
of information vertically and horizontally between the workers and workers, workers and
managers, managers and managers.

11
10. The principle of execution of orders.
It states that orders and instructions should always come from the right
places, departments and persons.

11. The principle of equal treatment.

It states that managers should treat everyone equally, to avoid conflicts and resistance.

12. The principle of stability of personnel.

It states that workers should be assured of their job security by formulating policies
that govern dismissals.

13. The principle of initiative

Initiative is the freedom to think, plan and to execute. Therefore, managers should allow
their subordinates limited autonomy to be creative but under their watchful eye, for that
helps to build their confidence.

14. The principle of Spirit de corpse (teamwork).

According to this principle, unity is strength, and therefore managers should do away
with divide and rule policy. Favor came up with qualities that a manager should have
to be able to practice the principles outlined e.g.
(I). Physical Qualities
- Should have good physique
- Should be of good health
- Should be smart – dressing not offensive.
(ii). Mental Qualities
- Should be intelligent and wise - desist from making emotional decisions.
- Should be quick to act
- Should be able to extract the hurting feelings of the group.
(iii). Moral Qualities
- Should be respectful
- Should be honest

12
- Should have self-determination and communication ability

(iv). General knowledge and experience

Should be well educated and experienced – should be able to understand what's

going on and what people are talking about.

3.3 BUREAUCRATIC THEORY OF MANAGEMENT

It was formulated by Marx Weber, who was reacting to the abuses of power by those in
managerial positions.
He had interest in better management practices, and stressed that there is need for a
strictly defined hierarchy of management, governed by clearly defined rules, regulations
and lines of authority.
He believed that an organization is that one that entails beaurocracy whose objectives and
activities are rationally thought out.
The theory puts emphasis on orders, rationality, uniformity and consistency.

Principles / elements of Bureaucracy

1. Hierarchy of authority
It states and shows the relationship between various managers, their areas of jurisdictions
and their relationship with the subordinates.
2. Division of work
It states that work is divided into sections workers are allowed to specialize and
hence increase their competence, efficiency and productivity.
3. The principle of rules
It states that rules and procedures should be followed if systematic control is to be
realized.
4, Standardization of methods
This implies a system of work procedures where similar tools, equipment and materials
are used irrespective of departments.

13
5. Selection and promotion of employees.
It states that selection and promotion of employees should be based upon managerial
and technical competence.
6.The principle of legal power and authority.
It states that beurocracy recognizes only legal powers and authority to each office
and position.
Authority therefore does not belong to an individual; it is part of the office.

Advantages of bureaucracy
1. It eases the top management's effort in controlling their organization.
2. It leads to consistency of employees’ behavior which may lead to quality.
3. It eliminates the conflicting job duties because activities and responsibilities are
well defined.
4. There is maximum utilization of resources, both physical as well as human.
5. The worker becomes a specialist through the principle of division of labor.
6. It helps to ease the goal attainment.

Disadvantages of bureaucracy
1. It makes managers dictators because they have too much power.
2. There is too much paper work and therefore wastage of resources.
3. Employees end up thinking less and work like robots.
4. It may lead to high resistance to change because workers are not involved in
decision making.
5. It does not give room to participating managers.
6. The overall goal attainment is hampered due to many rules to be observed.

14
Revision questions
i. What are the advantages of democratic theory of management?
ii. State the principles of scientific theory of management
iii. What are the similarities between Tailors and Fayols theories?

Further Reading:
1.George terry and Franklin, “Principles of Management”, Delhi, 1998
2.Peter Drucker, “Management, Tasks, Responsibilities and Practice”, Hauper and
Row,1987

15
TOPIC FOUR

4.0FUNCTIONS OF MANAGEMENT

Objectives:
By the end of the topic you should be able;
a. To state the characteristics of planning
b. To discuss the importance of planning
c. To highlight the steps in the planning process
d. To explain by use of examples the methods that are used in the forecasting

4.1 PLANNING
It’s the basic process by which we use to see our goals and determine the means to
achieve them. It bridges between where we are and where we want to go. It involves
setting missions, objectives and actions to achieve them.

4.2 ELEMENTS OF PLANNING / CHARACTERISTICS

1. OBJECTIVES
This specifies the future conditions that a manager hopes to achieve.

2. ACTIONS
These are means or specific activities planned to achieve the objectives.

3. FORECAST
A manager cannot plan without giving consideration to the future events and factors that
affect what will be possible to accomplish.

4. RESOURCES
These are constraints on the course of action.

16
A plan specifies all kinds and amounts of resources required, as well as the potential
sources and allocations of those resources to causes of action.

5. IMPLEMENTATION
A plan includes ways and means to implement the intended actions. It involves the
assignment and direction of workers to carry out the plan.

4.3 IMPORTANCE OF PLANNING

1. To co-ordinate the efforts
The work of individuals and groups must be coordinated and planning is an
important technique for achieving the coordinated effort.

2. Preparing for change

Effective plan allows room for change by preparing those to be affected by the
change and those to implement the changes

3. Developing performance standards / setting

As plans are implemented, specific set targets in the plans must be realized if
performance is to be rated as good.

4. Developing managers
Planning involves high levels of intellectual activities because those who plan must be
able to deal with abstract and uncertain ideas and information. Therefore, they must
think about the present and the future and show their relationships. That enhances their
analytical ability.

5. A source of funding
Plans are used by the donors and other financiers to determine the projects that they are
willing to finance. They are therefore used by organizations to source for funding. Better
plans easily attract the funding.

6. Budgeting
Individual department will normally prepare their departmental plans which has the

17
costing part, which ultimately can be taken by the organization in order to prepare the
master budget. This is realized by adding up the budgets of different departments
within the organization

4.4 PRINCIPLES OF PLANNING

1. Take time to plan don't be in a hurry;
Enough time should be taken to carry out an accurate situation analysis so that all factors
are considered.
2. Planning can be top down or bottom up;
Managers can formulate plans and pass on to the workers to implement them (top
down). 3. Communication
Communication be done to those who are to implement the plans and those to be affected
by the plans.
Communication should be done at the earliest possible time.
4. Flexibility
Plans should be flexible so that changes in the environment can be considered to ensure
success of the plan.
5. Evaluation
A decision must be taken on how and when evaluation is to take place. If the plan
is faced with hitches, then it should be revised.

4.5 TYPES OF PLANS

1. Strategic plans
These are long range plans made by top level managers and give a guideline to
other plans within the organization. They are the supreme plans within the company
2. Operational plans
These are plans made by departmental mangers and affects day to day running of those
departments.
They are derived from strategic plan. They are routine like plans which are made on daily
basis

18
3. Policies
These are general statements or understanding that guides the thinking in decision
making. They define an area within which a decision is to be made and that it must
be consistent to the objectives. They are the guidelines which are strictly followed for
uniformity and consistency of the decisions taken and the actions undertaken

4. Procedures
These are plans that establishes a required method of handling future activities. They
are chronological sequence of required actions.

5. Budget
It is a plan statement for a given period of time in future exposed in financial terms. It
shows revenue and expenditure to be undertaken. Budget are never violated easily
without the management’s intervention

4.6 STEPS IN PLANNING

1. Environmental analysis;
This is where an accurate examination of the organization strengths and weaknesses is
appreciated.
This assists in formulation plans that will be achievable.

2. Setting objectives
This specifies the expected results and indicates the end points. It shows where we want to be and
what we want to accomplish and when.

3. Consider the planning premise

This is where the environment or place where the plan is to be executed is prepared.
This helps to reduce implementation problems. This includes acquiring of extra space
and specialized equipment’s

4. Evaluate the alternative courses

This is where an evaluation to identify the most fruitful, applicable, cost effective and

19
less risky alternatives are taken.

6. Selecting a course of action

This involves making a choice on which course of action to take. Is where the plan
is adopted.

7. Formulate the supporting plans

This involves getting items and facilities to help in the implementation of the plan. It
includes buying of equipment materials, hiring and training of workers etc.

8. Preparation of the badges

This shows the overall costs for the plan where the resources will be got and how they
will be allocated or used.

4.7 LIMITATIONS OF PLANNING

1. Planning is costly and time consuming process. Time is required when forecasting is
done but sometimes there is limited time and the outcome is hard to implement.
2. It’s a future oriented activity based on forecast. There is unreliable and inadequate data
on the future thereby making planning difficult.
3. Planning becomes rigid due to internal inflexibility which in turn reduces personal
initiative and freedom and causes delay in decision making. Internal inflexibility includes
- Rigid policies
- Procedures and limited resources.
4. External factors beyond the control of an organization affects its planning process the
factors include;
- Government control and legislation
- Technological changes
- Trade unions pressure etc.
5. Planning fails due to incorrect plans being formulated because of lack of commitment,
delegation and excessive reliance on past experience.

20
4.8 HOW TO OVERCOME PLANNING PROBLEMS
1. Set realistic and achievable goals.
2. Communicate the assumption on which plans are formulated to all departments and
people.
3. Encourage participation of all stake-holders so as to ensure their right commitment.
4. Ensure there is proper co-ordination of the plans.
5. Reconcile both short term and long term plans.
6. Encourage creativity in planning. Creativity helps to identify the best alternatives.
7. Consider the company's financial position.
8. Reduce the level of internal flexibility so that changes in the environment can be
considered.

4.9 STRATEGIES APPLIED BY ORGANIZATIONS

1. CONCENTRATION STRATEGIES
This is where the focus is on one line of business. The strategy is used by firms to gain a
competitive advantage through efficiency and specialization.

2. STABILITY STRATEGY
It is where a firm maintains one line of business for a long time because growth
or expansion cause for an extra cost.

3. GROWTH STRATEGY
(a). Vertical integration
This is where one firm acquires another that is in the same business and process of
production. If the acquired firm is a head in the process of production and nearer to the
consumer the process is called forward vertical integration e.g. Kenya Breweries buys all
restaurants so that they can be able to deal with the consumers. But if the acquired firm
is behind in the process is called Backward vertical integration.

(b). Horizontal integration

This is where one firm buys another that is in the same industry and level of production
e.g. Mumias Sugar Company buying Sony Sugar Company.

21
(c). Diversification strategy
This is where a firm engages or starts producing other products to be able to
minimize chances of making losses.

(e). Mergers
This is where two or more companies dissolve and come together to do business under
a new name or identity.

(f). Joint venture

This is where two or more firms continue existing and doing their initial businesses but
come together and starts a new common business under a new name.

4. LEVERAGE – BUY OUT

This is where shareholders are given money for their shares at a higher rate by the
company. Then later the company resales those shares at a very high price to raise
capital.

5. RETRENCHMENT STRATEGY
This is the last option resort by companies if their survival is threatened and it’s not
competing effectively therefore it lays off some workers.

Revision questions:
i. What are some of the growth strategies that can be applied by an organization?
ii. Discuss the importance of planning
iii. What are the steps that are followed in the planning process?
iv. Highlight the principles of planning

Further Reading:
1. George terry and Franklin,” Principles of Management”, Delhi, 1998
2. Peter Drucker, “Management, Tasks, Responsibilities and Practice”, Hauper and
Row,1987

22
TOPIC FIVE

5.0 ORGANIZING

By the end of the topic you should be able to:

1. State the principles of organizing
2. Discuss the organizational structures that are easily available in companies
3. State the factors that are considered in choosing the span of management

Organizing is a process of identifying the overall tasks and responsibilities to be

performed in an organization and then put together those that are similar to form a
department. Therefore, an organizational structure refers to the forms of departments.

5.1 PRINCIPLES of ORGANIZING

1. Unity of objectives
Every part or department must contribute towards attaining the enterprise objectives

2. The principle of continuity

The departments created should be those that will be in existence for a long time, to allow
for long term planning.

3. The principle of flexibility

The structures created should be flexible to allow for restructuring where some
departments would be dissolved and merged with others.

4. The principle of simplicity

The structures chosen should have minimum number of levels for easy decision making
and to avoid confusion.

23
5. The principle of delegation
It states that authority and tasks can be shared with the subordinates. Delegation is from
top to bottom.

6. The principle of unity of command

It states that subordinates should not take instructions and orders from more than
one person because that causes conflicts and frustrations

7. Scalar principle
It states that at least one manager should have ultimate authority to overrule decisions
taken by other managers and solve interdepartmental conflicts.

8. The principle of span of control

This is where an organization plans on how many people or workers can one manager
effectively manage.

5.1.1 Factors influencing the span of control or management

1. The manager's personality
If they have a strong need for power, they will prefer a wider span but those who are
threatened because they can’t oversee the activities of many workers and therefore a
narrower span would be chosen.

2. Manager's capability
Experienced, well brained and knowledgeable managers are able to handle large
groups and therefore a wider span and vice-versa.

3. Subordinate's capability
Experienced and well brained subordinates will resolve difficulties by themselves and
there's no need for a manager and hence a wider span will be chosen.

24
4. Fatigue tolerance
Physical and mental fatigue may lead the managers’ capacity for control and therefore a
narrower span and vice-versa.

5. Non-supervisory Activities
If managers spend more time on non-supervisory activities like long range planning and
outside assignments that make them have less time to supervise the workers, that limits
span hence a narrower span and vice-versa.

6. Similarity of Activities
If the tasks are routine-like, then a manager can manage more subordinates and therefore
a wider span and vice-versa.

7. Location
If subordinates are widely dispersed and more time is required in traveling, a
narrower span will be chosen and vice-versa.

5.2 TYPES OF ORGANISATIONAL STRUCTURES

5.2.1 FUNCTIONAL STRUCTURE

This is where a department is named from the function it executes e.g. Marketing, HR,
purchasing. Examination etc.

Advantages of functional structure.

i) It leads to specialization.
ii) It reduces conflicts within the organization.
iii) It leads to better utilization of resources.
iv) Career and promotion paths are created.
v) It reduces confusion to the clients who want to see and have their problems sorted
out by different departments.

25
Disadvantages of Functional Structure
i) Departments might deviate from organizational goals and act independently.
ii) Decision making takes a long time (if somebody is not there).
iii) There is lack of coordination.
iv) Specialization can lead to breakdown particularly if one department is not
functioning.
v) There are functional conflicts especially if departments are competing for
scarce resources.

5.2.2 PRODUCT – LINE STRUCTURE

This is where a department is named after a particular product particularly in a company
where more than one product is produced e.g. Coca-Cola Company has many
departments:

- Fanta - Dept. - Coke dept. etc. -Krest dept. - Sprite dept.

Advantages of product line structure

i) There is good coordination within a specific product group.
ii) It leads to innovation and creativity that they keep improving on the product.
iii) There are fewer communication problems.
iv) It enables product groups to concentrate on their products and improve on
quality and marketing.
v) It leads in specialization of men and machines.

Disadvantages of product line structure

i) If one product lets down a consumer, all other products will be rejected.
ii) Individuals division could be in conflict due to competition of scarce
resources.
iii) Wastage levels are high due to duplication of resources, for instance, each
section having a marketing manager and advertises differently.

iv) Inefficiency by one division head may cause the whole production line to

26
come down.
v) It is difficult to maintain coordination among the product areas.

5.2.3 GEOGRAPHICAL – BASED STRUCTURE

This is where goods and services are provided over a wide area and a communication
channel justifies this form of departmentation. It is where more branches are opened
within more geographical locations.

Advantages of geographical based structure

1. The company is able to cater for wide markets.
2. The customers get what they really want because the organization is involved in
the local environment.
3. The cost of operation is low.
4. It provides a good training ground for managers.
5. The knowledge of local conditions helps in decision making and therefore helps
the company to earn good will.

Disadvantages of geographical based structure

1. It is costly to implement.
2. It is difficult to coordinate.
3. Some branches may deviate from original goals and act independently
4. It is difficult to maintain the original culture of the head office.

5.2.4 MATRIX OR ORGANIC STRUCTURE

This is where departments contribute few workers who are relocated far away from the
office to the site where the project is taking place until it is completed. It is common in
NGO's and project related organizations.

27
CEO Head Office

HRM Finance Marketing Design

Production
3 3 3 3 3
Project A.........................................................................................................................
Project B........................................................................................................................

The project manager coordinates the project and is the accounting officer and reports
directly to the CEO. The workers working for the project report to their departmental
heads.
The project manager provides the technical expertise and ensures the success of the
project.

Advantages of matrix structure

1. It reduces bureaucracy in the organization where procedures are not strictly
followed

2. It leads to proper utilization of human resources.

3. There is better control of the project – the project is controlled well.
4. It clarifies who is responsible for the success of the project.
5. There is short project development time.
6. It aids in the development of managers. A training ground for managers.
7. It develops employees' skills by allowing them to handle different projects with
different projects with different challenges. It acts like job rotation.
8. Workers are fully motivated because of the fringe benefits they derive.
9. Employees are able to identify with the end products.
10. The top echelons are left free to plan and strategize for they are not involved
directly in the running of the project.
11. It enhances teamwork and cooperation. A bonding develops.

28
Disadvantages of Matrix structure
1. The functional managers may neglect their duties and let the project manager do
everything.
2. Too much shifting of staff from project to project may hinder training of new
employees. (You do not abandon or change a winning team).
3. There is conflict because the workers at the site are at loss on whom to pay their
allegiance between the project manager and their functional heads.
4. The staff morale is affected after completion of the project because they are socially
re-arranged e.g. they have to move far from the newly acquired friends at the end of
the project.
5. The structure only works only where interpersonal relationships are well developed.

5.2.5 Customer based structures

This is a structure prepared with a particular client in mind. It is common in service
industry e.g.
Hospitals, hotels and automobile firms

Disadvantages of customer based structure

1. If the customer rejects a product because of its quality, the entire organization is
threatened.
2. It is costly to implement because specialized departments have to be set up
3. It requires only specialized and skilled workers

Advantages of customer based structure

1. It offers personalized services.
2. They satisfy the customer's needs.
3. It is easy to get feedback which enables an organization to make necessary changes.

29
5.2.5 CENTRALIZATION AND DECENTRALIZATION
DECENTRALIZATION
It is the transferring of the authority from supervisors to the subordinates. It is
where power is dispersed and shared.

Advantages of decentralization
1. It speeds up the decision making.
2. The echelons (top management) are left free to plan and strategize.
3. It helps in development of professional managers.
4. It enables for multi-skilling and development of junior staff.

Disadvantages of decentralization
1. There is lack of consistency because more people are involved in decision
making.
2. Customers are not subjected to the same treatment.
3. There is misallocation of resources especially if controls are not established.
4. Senior managements must do a lot of coordination to avoid units working
contrary to the organizational goals.

CENTRALIZATION
It is the concentration of power and authority in the hands of few people. It takes place in
bureaucratic structure. (Authority is legal and given-comes with the position).
Authority - is bestowed on an individual and it's legal. It is a right in a position to give
orders and expect the orders to be obeyed.
Power – It's the ability to influence behavior of others and it's not given but rather it
is acquired

5.3 FORMS / BASIS OF POWER

(a) Coercion power
This is power that is exercised by causing fear and threatening e.g. A thug having a
gun.

30
(b) Reward power
This is where people's behavior is influenced through reward and incentives.
(c) Legitimate power.
This is power that comes from one's position e.g. DO's, Managers etc.
(d) Expert power
This is power that's exercised through one's knowledge, skills and expertise e.g.
Doctors, engineers
etc.
(e) Referent power
This is where one identifies with a person who has desirable resources, personal
traits that are good or feared.

Revision questions;
i. What are the advantages of a matrix structure?
ii. Which is the cost commonly used in Kenya
iii. Discuss the principles of organizing
iv. Distinguish between a wider span and a narrower span

Further Reading:
1.George terry and Franklin,” Principles of Management”, Delhi, 1998
2.Peter Drucker,” Management, Tasks, Responsibilities and Practice”, Hauper and
Row,1987

31
TOPIC SIX

6.0 CONTROLLING

By the end of the topic you should be able:

a. To state the characteristics of controlling
b. Highlight the objectives of controlling
c. Discuss the importance of controlling

6.1 INTRODUCTION:
It’s a manager sets targets and objectives and measures to find out how far

they have been achieved. It’s meant to find out whether there are deviations

so that a corrective action is taken to ensure everything is on course.

6.2 OBJECTIVES OF CONTROLLING.

The following are the objectives that any controlling effort is meant to achieve:

To keep checks on the expenses both direct and indirect expenses

To find out whether the objectives set are achievable

To ensure the company moves to the highest level possible to find out

what is happening, why and by whom it happens to ensure all activities

are carried out according to plan

6.3 CHARACTERISTICS OF CONTROLLING

6.3.1 It is forward looking
It seeks to correct the future actions happening in an organization. It is

based experience of control which guides the future actions of a manager

6.3.2 It is a continuous process

Its where the organization continually evaluates its systems in terms of

targets, objectives, goals and so forth to find out if everything is fine

32
6.3.3 It is a management function
It is only carried out only by managers because it involves taking corrective action which
includes, mobilizing for additional resources, employment of new staff, changes in the
company’s operations. These are issues that cannot be delegated

6.3.4 It is carried out at all level

Manager’s irrespective of their level carry out controlling. This is so because they have
targets and objectives that they are pursuing. They often ensure operations in their areas
of jurisdiction is smoothly running according to plan

6.4 STEPS TO BE FOLLOWED IN CONTROLLING

6.4.1 ESTABLISHMENT OF THE STANDARDS
This is a basis of measurement of performance which can be in quantitative and non-
quantitative terms. A standard is a benchmark on which the results are measured.
There are many standards that can be made including:
Cost standards-this ensures that costs anticipated are not surpassed
Revenue standards-this ensures that the expected revenue from an activity is indeed
realized if performance is to be rated as good
Physical standards-these are countable like the number of working hours, units of
production per machine etc.
Capital standards-this includes, rate of return on capital invested
Intangible standards-such as competency of workers and customer care success

6.4.2 MEASUREMANT OF PERFORMANCE

It is the measurement of the actual performance in order to know what has happened or
what is likely to happen. The measurement can be done through observation of the
worker’s performance. It can also be in terms of reports, charts and any management
summaries. Its purpose is find out if there is anything amiss at the earliest time possible

33
6.4.3 COMPARISON OF THE ACTUAL PERFORMANCE WITH THE
STANDARD
This is finding out what was set out at the beginning of the controlling period in terms
of targets and objectives and what has been realized at the end of the period.

6.4.4 FINDING OUT FOR DEVIATIONS

While comparing the actual and the standard performance, any deviations are identified.
A positive deviation means the targets were surpassed and the management requires to
identify the contributing factors so that everything can be maintained. A negative
deviation means that the targets set out were not realized and therefore a corrective
action must be under taken in order to put everything back on course. This could include
transfers of workers to other departments, re-doing the plans and increasing the funding
of the projects.

6.5 IMPORTANCE OF CONTROLLING

It is a basis for the future action because the planning is based on what has happened in
the past
It helps in facilitating of coordination because everything is set out clearly in
the procedures
It helps to reduce the possibility of the results not conforming to the set standards
It simplifies the supervision for the managers
It is a form of delegation within the organization

Further Reading
1. Geert Hofstede, “The poverty of management control philosophy”, Richards 1988
2. David C. Mclelland, “Readings in Management”, South western Publishing Company
1966.

34
TOPIC SEVEN

7.0 LEADERSHIP

By the end of the topic you should be able:

a. Identify the characteristics of successful leaders b.

discuss the roles of leaders
c. Describe the leadership styles that are used world over
d. Explain the theories of leadership

This is the ability to influence people's behavior. It is the ability to influence people to
willingly follow one's guidance and adhere to one's decisions. A leader is the one who
obtains followers and influences in setting and achieving of objectives.

7.1 LEADERSHIP ROLES

1. Educator role
- A leader will teach employees job skills, acceptable behavior and organizational values.
- Managers work habits, attitudes and behaviors serve as a role model.
- A leader is also responsible for formal training.
2. Counselor role
- This role involves listening, giving advice, preventing and helping employees to
develop solutions to their problems.
- A leader is expected to show an awareness and concern for the employees.
3. Judge role
It involves
- Appraising subordinates' performance.
- Enforcing policies, procedures and regulations.
- Setting disputes and dispensing of justice.
4. Spokesperson role

35
- A leader speaks on behalf of the subordinates, the department and the organization.

7.2 ATTRIBUTES OF A LEADER

1. Emotional appeal
- A manager should be a rational decision maker, problem solver and is expected to use
his/her analytical skills in the process of decision making.
- S/he should have a great vision which can alter the mood of the followers.
2. Needs of followers
A leader should meet the needs and fulfillment of his/her followers. This helps in
securing voluntary compliance.
3. Personal traits
- A leader should have the following traits: -
a). Positive attitude and perception towards people. b).
Self-motivated.
c). Should have self-confidence and communication ability. d).
Have trust in other people and also be trustworthy.
4. Leadership matches
- A leader should match his/her personal traits and the situational demands e.g. dancing
when they are dancing.
5. Leadership effectiveness
- A leader aims at realizing and achieving the goals of the department and to satisfy the
employees' needs.

7.3 CHARACTERISTICS OF SUCCESSFUL LEADERS

They should have the following:
- A strong desire for task accomplishment; want to perform.
- Persistent pursuit of the organizational goals.
- Creativity and intelligence to solve problems.
- Willingness to accept to their behavioral consequences i.e. accepting their mistakes.
- High tolerance for other people.
- Ability to influence other people.
- Ability to structure social interactions.

36
- Devote more time to supervisory activities than in doing the work itself.
- Willingness to permit employees to participate in decision making.
- High intelligence than the subordinates.
- Gives recognition for good work by subordinates.

7.4 THEORIES OF LEADERSHIP

7.4.1 TRAIT THEORY
It is the first theory of leadership and it asserts that the ability to lead is dependent on the
innate (inborn) characteristics. It states that leadership is natural and cannot be learnt.
- The natural characteristics that one should have
include: a). Personal initiative
b). Self-assurance c).
Decisiveness d).
Assertiveness e).
Compassionate g).
Intelligent
f). Compassionate
g). Tall (ability to think and see far) h).
Good looking (well groomed) I).
Melodious voice
j). Should be wise.
NOTE: There are extremely large numbers of personal traits and it is not known
how many should one have to qualify to be a lender.

7.4.2 THEORY X and Y

It states that leadership style is influenced by the type of subordinates in the organization.
Theory X
It stipulates the following:
I). The average worker dislikes work and must therefore be coerced into
making maximum efforts with
inducements, sanctions and threat.

37
ii). Workers are naturally reluctant to take responsibility preferring the security of
being controlled.
iii). Workers are happy with clearly defined tasks than broadly defined objectives. iv).
Employees are normally resistance to change (they always want to maintain status
quo) so that change must be imposed on them by those in authority etc.
NB: The leader to manage workers in this category, s/he must take on board dictatorial
tendencies.

Theory Y
It stipulates the following:
I). Workers will usually work hard without being coerced.
ii). Employees can be relied upon to exercise self-direction and control.
iii). Workers like work and are always seeking responsibilities.
iv). Most employees possess substantial potential for creative work.
They can sort out any technical issues no matter how technical the tasks are.
NOTE: A manager to influence the above workers will embrace democratic and laissez-
faire (free reign) type of leadership.

7.4.3 CONTIGENCY THEORY

It stipulates that leaders should be able to adapt to specific situations as they arise. Therefore,
a leader must be prepared to change his/her behavior as circumstances change.

Advantages of contingency theory

- A leader is allowed to make his/her decisions appropriate to the situation at hand.
- A leader is encouraged to analyze logically the characteristics of the situations to
deal with.

Disadvantages of contingency theory

- A leader may appear to his/her subordinates as inconsistent and insincere because
of frequently changing.
- Individual managers may not be sufficiently skilled to change decision and

38
leadership styles to match different situations.

7.4.4 PATH GOAL THEORY

- It is where a leader is seen as source of goal on reward, the leaders’ major task is
to clarify the path to be followed by subordinates. A leader changes leadership
styles according to:
a). Characteristics of subordinates
b). Clarity of organization’s formal authority system c).
The physical environment in which work is done. d).
Maturity of subordinates
- It stipulates that leadership is dependent on maturity of subordinates. 4 styles are
identified in this theory.
I). Telling only – this is where a leader gives instructions to the subordinates and they
follow as expected.
ii). Telling and setting – a leader gives instructions to the subordinates and persuades them
to accept his/her position.
iii). Participating – it is where a leader shares ideas, opinions and involves the
subordinate who are willing and unwilling.
iv). Delegating styles – a leader allows subordinates to make decisions and their own with
minimum interference.

7.5 LEADERSHIP STYLES

1. AUTHORITARIAN STYLE – a leader has all the authority and responsibility in an
organization and communication moves from top to bottom. A manager assigns tasks to
specific workers and experts orderly and precise results.
A manager sets goals, tells workers to do and how and when to do it. Workers just
implement.

2. AUTOCRATIC – It involves close supervision and a leader issues precise and

detailed instructions to cover every task.
a) Dictatorial leadership style
- A leader tells workers what to do without comment or discussion.

39
- There are rewards and penalties for success or failure.
- There is strict control and no respect is shown by the leader to the subordinates.
- Descent is not tolerated.

b) Paternalistic leadership style

- There is presence of close supervision, detailed instructions and a highly structured
leader / subordinate relationship.
- A leader attempts to gain respect and allegiance of the workers.
- Limited decent is tolerated and rewards are given to those who follow the instructions.

Advantages of Autocracy
I) Managers adequately coordinate work thereby facility its
completion. ii). Decision making is faster.
iii). It assists the subordinates to achieve their goals at work.

Demerits of Autocracy
I). Employee’ skills and knowledge is not fully utilized.
ii). It suppresses the workers’ initiative and therefore they cannot develop to their full
potential.
iii). Workers may not be capable of working without close supervision.
iv). Resentment by subordinates may occur if they are only involved in minor issues and
excluded from major ones.

4. FREE REIGN (Laissez-faire)

- A leader allows workers to work as they choose with minimum interference.
- Employees make decision and structure their own activities.
- They consult with the leader but s/he is not directly involved in decision making.
- A leader tells them what to do and when it should be accomplished and the workers
decide on how to accomplish it as they wish.
Communication flows horizontally among the group members

40
 Revision questions
i. What are the advantages of democratic style of leadership?
ii. Describe the attributes of a leader
iii. Name and explain any THREE theories of leadership
iv. Discuss the sentence that leaders are BORN and NOT MADE

Further Reading
i. Fred E. Fielder,” A Theory of Leadership effectiveness”, New York; McGraw Hill
Book Company
ii. John B. Miner, “Theories of Organizational structure and Process”, Hinsdale; The
Dryden Press

41
TOPIC EIGHT

8.0 GROUP FORMATION

By the end of the topic you should be able:

a) Identify the various types of groups
b) State reasons for group formation
c) Discuss the stages for group development
d) List the advantages of group cohesiveness

8.1 TYPES OF GROUPS

8.1.1 INFORMAL GROUPS
Groups and societies that are started either by accidents or unconsciously by the members
of the group.
They are also started by purpose.
At the beginning they don’t have guidelines to govern their behavior.

Functions / Advantages of informal groups

1. Assist to maintain and strengthen to work and values of their member.
2. Give members a feel of social status and security.
3. Help their members to some personal problems.
4. They act as reference points to the members.
5. Assist management in disciplining its workers.

Disadvantages of informal group

1. Difficult to manage because of mixed abilities and different background.
2. They may cause problem of conformity.
3. They may cause a problem to management through resistance.
4. They are time consuming and expensive to maintain.

42
8.1.2 FORMAL GROUPS
These are groups created by management and are sometimes contained in the
mission statements e.g. training committee, disciplinary.

Advantages of formal groups

1. Help ease managements’ work.
2. Help to implement policies and decisions of an organization.
3. Help in formation of organizational objectives.
4. Help to alleviate conflicts between groups and departments.

Disadvantages of formal groups

1. They are expensive to maintain
2. They cause biasness if constituted unfairly.
3. Causes fighting and division among members who would wish to be elected.
4. It is time consuming – takes long to make decisions.
5. Competition for scarce resources.

8.2 GROUP FORMATION

8.2.1 Factors that influences Group Formation
a). Physical proximity, people who are close to one another finds it easy to
work together as opposed to those who are far apart
b). Common values / interests. It’s easy for people with common values to work
together for they have something in common for instance those who are smokers will
easily work together.
c). Institutional backgrounds e.g. colleges. Those who share the same institutions of
learning easily trusts each other and are likely to be partners
d). Age / peers. Members of the same age finds it appealing to work together as opposed
to those who age brackets are far from one another
f). Similar jobs and professionals. Members of the same profession organizes

43
themselves in groups such as merry-go rounds, co-operative societies etc. This is
because they understand each other and have almost similar ambitions
g). Psychological reasons i.e. social, esteem, self-actualization
h). Common threats. Those who are facing a common threat will naturally come
together to protect themselves and end up having a group formed

8.3 STAGES OF GROUP DEVELOPMENT

8.3.1 Formation Stage
It is known as an orientation and testing stage because members attempt to determine
behavior to be gained by being a group member.

8.3.2 Storming Stage

It is a stage marked with conflicts and interpersonal differences as members vie for group
leadership and task roles.
It/s characterized by a lot of disagreement because some members want to dominate
others.

8.3.3 Norming stage

It is a stage where values have been accepted and it’s marked with a lot of solidarity,
cohesiveness and team spirits.

8.3.4 Performance stage

A stage where group performance had increased and all objectives has been realized.

8.3.5 Adjournment stage

Tasks have completed and the group seizes to exist. It stops to exist and group members
form new groups with new tasks and objectives.

8.4 GROUP COHESIVENESS

This is a situation where members are willing and ready to stick together and support one
another i.e. they have high solidarity level.

44
8.4.1 Factors for group cohesiveness
I). Friendly group atmosphere
ii). Similarity among the members. iii).
Interdependence among member’s iv).
Attractive goal
v). Small group size (size of the group). vi)
A common threatening environment.

Advantages of Group Cohesiveness

1. It leads to better group interaction
2. There are less inter-member conflicts
3. Greater interpersonal coordination
4. Members can achieve what would have not been achieved as an individual.
5. Members are socially satisfied because of being able to identify themselves with
the group.

Disadvantages of group cohesiveness

1. Likelihood of disagreement between members.
2. Poor image particularly if a group is involved in illegal activities (poor image).
3. Lead to unhealthy competition among the members.
4. Conflicts may lead to collapse of the group.
5. Increase resistance to change.

8.4.2 Advantages of Group Decision Making

1. There is easier coordination.
2. Communication levels are high.
3. Greater number of alternatives will be presented.
4. More information will be processed.
5. Help to distribute authority
6. It saves as a training ground because members learn from one another.
7. Boosts employee morale.

45
Disadvantages of group decision making
1. Takes long (time consuming)
2. Some members can dominate
3. It is expensive to manage a group.
4. Risky decision can be taken by members because nobody will be held responsible.
5. It may lead to premature decision being implemented.

Revisions questions:
i. Distinguish between formal and informal groups
ii. Discuss the stages of group development
iii. What are the advantages of group cohesiveness?
iv. What are the disadvantages of informal groups?
v. Identify the factor that causes groups to easily form

Further Reading
i. John B. Miner, “Theories of Organizational structure and Process”, Hinsdale; The
Dryden Press
ii.. Penning J. M., “Decision making: An organizational Behavior Approach”,
Bridge, com weiner1993

46
TOPIC NINE

9.0 ORGANIZATIONAL CULTURE AND DEVELOPMENT

By the end of the topic you should be able:

1. To identify the characteristics of an organizational culture
2. To state the types of organizational culture
3. To distinguish between organizational culture and organizational development
4. To state the goals of organizational development

Culture is how things and activities are done in a particular organization. It’s their way
of operation or an identity. It ranges from rules, procedures and dressing code

9.1 ELEMENTS OF ORGANIZATIONAL CULTURE

1. Perception of an organization and its environment. How the society view the
organization, that becomes its culture.

2. Accepted manner of reacting to new situations and challenges such as competition.

3. Its accepted dressing pattern / code and attire for its members. Its where anybody
without the uniform is supposed not to be on duty

4. Projected image – winner or loser

- Profit maker – Notable employee developer.
- A frustrate of labor turnover (nobody leaves the organization). This helps in
attracting quality workers

47
5. Recognized identify
- Quality of product and its services
- Efficiently customers handling and caring.
- Known product or service.
- This is where the product is known in quality, appearance and economy.

6.The do’s and don’ts – The rules and regulations that govern the organization. This
includes the accepted norms and directed by rule.

9.2 TYPES OF ORGANIZATIONAL CULTURE

1. Power Culture – it involves a small number of senior executed who have power to
give direction and make decisions. All important matters must get their approval and
support to become
2. Role Culture – it is concerned with bureaucratic process where roles are clearly
specified. Its where the roles are well spelt out and hence there are no chances of
conflicts and confusions
3. Support Culture – This is where management purchases the right tools and equipment
to support the workers and equally workers support management decisions.
4. Achievement Culture – Where recognition of and reward for positive contributions
done. It encourages self-expression and independence.
5. Task Culture – Its where activities to be performed are matched with the skills that
one should have to be able to perform.

9.3 ORGANIZATIONAL DEVELOPMENT

It refers to a long range effort to improve an organization problem solving capacities and
its capability to cope with changes in the external environment.

9.4 CHARACTERISTICS OF AN ORGANIZATION DEVELOPMENT

1. Educational strategy which attempts to bring about planned change.
2. It relates to real daily problem instead of hypothetical instances.

48
 3. It is an external change agent because it seeks to reconcile the organization with
external commitment.
4. It puts emphasis on group and organization process it uses committees.
5. It uses action research to solve organizational problems.

9.5 GOALS OF ORGANIZATIONAL DEVELOPMENT

1. To develop a self-renewing viable system this might be helpful to the
organization in a variety of ways depending on the tasks to be performed.
2. To create an environment in which authority assigned role is performed.
3. To increase the openness and communications within an organization.
4. To create conditions in which conflicts are effectively managed.
5. To build team work through collaborations nobody is being coercive.
6. To increase the level of trust & support for non-organization members.

9.6 PROCESS OF ORGANIZATIONAL DEVELOPMENT PROGRAM

9.6.1 PROBLEM RECOGNITION
A manager or CEO should recognize that is a problem e.g. through low morale
and customer complaints.
9.6.2 ORGANIZATION AND DIAGNOSIS
Finding out the actual problem by finding out facts and information about it.
9.6.3. FEEDBACK
After the data is analyzed it’s given to the authority managers with a view of
getting reasons for implementations.
9.6.4. DEVELOPMENT OF CHANGE STRATEGY
These are resolutions rendered to be problems which are ultimately implemented.
9.6.5. MEASUREMENT & EVALUATION
After a specified period of time, a selected group meets again to measure & evaluate
the effectiveness of the OD efforts.

49
Revision Questions:
i. Discuss the process the process of organizational development
ii. what are the characteristics of organizational culture?
iii. Describe the types of organizational culture
iv. What are the goals of organizational development?

Further Reading
1. John B. Miner, “Theories of Organizational structure and Process”, Hinsdale; The
Dryden Press
2. Richard M. Hodgetts, “Management Theory, Process and Practice”, Academic
Press, New York

50
TOPIC TEN

10. HUMAN RESOURCE PLANNING AND MANAGEMENT

By the end of this topic you should be able:

i. To state the characteristics of MBO
ii. To highlight the importance of human resource planning
iii. To discuss the barriers to HRP
iv. To state the principles of HRM
v. To explain by use of examples the concerns of HRM

10.1 HUMAN RESOURCE PLANNING

-It is a process whereby one looks at the present composition of the workforce within an
organization with a view of changing it.
- It is a process of forecasting an organization’s future demand for and supply of the
type of workers in the right number.

10.2 IMPORTANCE OF HR PLANNING

10.2.1 Future personnel needs
It helps an organization in identifying the future personnel needs and therefore
an organization is prepared to realize the need.

10.2.2 Coping with change

It enables an organization to cope with changes in competitive market,
technology, product & government regulations.
The changes generate changes in the job contents skills demand member and type
of personnel.

51
10.2.3 Creating highly talented personnel
Helps to prevent a vacuum of the required personnel by ensuring for constant training and
replacing those who have left.

10.2.4 Protection of weaker sections

It protects the interest of the handicapped, backwards, oppressed, by giving them special
considerations in recruitment.

10.2.5 International strategies

Helps local organization fill jobs with foreign nationals as the internationalize and expand
etc.

10.3 BARRIERS TO HUMAN RESOURCE PLANNING

1. People don’t see the need for HR future planning and therefore they do not cooperate.
2. HR practitioners are not business experts and some of their accommodations may not
suit in the business strategies making their implementation impossible.
3. Conflicts may exist between the short term and long term HR.
4. Sometimes records are defective, not updated making HR planning impossible to
carry out.
5. If the departmental managers are not used in HRP, its implementation is difficult.

10.4 PRINCIPLES OF HUMAN RESOURCE MANAGEMENT

Workers as an asset-care should be given to them because without them nothing can
take place even with the presence of money, materials, machines and plans

Principle of integration-workers be made to work harmoniously to realize the

intended goals

Principle of involvement-workers be involved in decision making in order to

receive their total support

52
Principle of cooperation culture-managers should provide the right environment to
support the worker’s activities

10.5 THE CONCERNS OF HUMAN RESOURCE MANAGEMENT

1. A concern for People:
a) Respect for individuals-this is where the workers are given a voice by being allowed
to form and join a trade union in order to question on how they are managed and by
whom they are managed.
b) Mutual respect-its where the workers are expected to respect the management’s
decisions that are made including the procedures for working. Its realized by establishing
both formal and informal committees to sort out the differences between the management
and the workers
c) Transparency-this is where the management explains the proposals, procedures and
decisions that are taken to the workers well in time

2. A concern for the Performance of the Workers

The managers motivate the workers by improving the working conditions in order to
realize the right commitment into the workers. This in turn enhances their performance.
Manager’s duty is to ensure the company gets the very best from the workers

3. A concern for the Performance of the Management’s Procedures

This is where the managements evaluate their provisions in terms of plans, working
conditions, procedures, methods of production etc. to ensure that they are indeed
helping the workers in their performance. At times the worker’s performance is affected
by what has been provided by the managers like having faulty plans and equipment’s.

10.6 MANAGEMENT BY OBJECTIVES (MBO)

It is also known as management by results
- This is a modern method of setting organizational goals which subordinates work as
a team in a collaborative manner in setting the organizational goals.

53
MBO is based on two assumptions
I). Goals should start at the top then flow downwards to the rest of the
organization. ii). Through the process of collaboration, subordinates would become
more accommodated and more committed in achieving organizational goals
without any resistance.

10.6.1 HOW MBO WORKS

1. Top management scans through the environment and comes up with the overall goals
and objectives.
2. The top management also identifies the organizational resources.
3. The overall goals and objectives are well communicated to all employees through
their supervisors.
4. The subordinates each meets with their supervisors to discuss the superior goals as
given and come up with the critic and how the subordinates will assist in achieving
the goals.
5. The subordinates are asked to set their individual goals in relation to the general
objectives and available resources.
6. Subordinates are then provided with resources and given time to pursue their goals at
their own pace.
7. Each time the superior holds periodical meetings with the subordinates to evaluate the
degree of goal attainment.
8. At the end of the preferred period of time, the management and the subordinates meet
to assess the extent of goal attainment.
9. Those subordinates who have attained / achieved their goals are rewarded and
asked to set other goals. Those who have failed to attain their goals are given
remedial action and then told to go back again.

Advantages of MBO
1. It leads to high motivation.
2. It leads to high performance and efficiency.
3. It is a basis of training.

54
 4. It reduces high staff turnover.
5. It reduces conflicts and resistance that is related to change.
6. It acts as a basis for improving communication.
7. It saves top management for self-evaluation of both the management and
subordinates.

Disadvantages of MBO
1. It is time consuming.
2. It is costly in terms of paper work.
3. It may lead to conflicts and resistance by the lazy workers.
4. Individual goals are very difficult to set.
5. It tends to overemphasize the short term goals at the expense of the long term
ones.
6. It leads to a lot of rigidity and avoidance of divergent thinking or creativity.
7. Environmental changes and conditions may weaken MBO e.g. changes in
technology.
8. It may make the top managers and the management in general to be lazy.

Revision Questions
i. Discuss the concerns of human resource management
ii. Highlight the importance of HRP
iii. Discuss MBO as a tool of management
iv. what are the characteristics of an organizational culture?
v. Highlight the barriers to HRP that can be witnessed in any organization

Further Reading
1. John B. Miner, “Theories of Organizational structure and Process”, Hinsdale; The
Dryden Press
2.Richard M. Hodgetts, “Management Theory, Process and Practice”, Academic
Press, New York

55
TOPIC ELEVEN

11.0 STAFF MOTIVATION

By the end of the topic the you should be able;

1. Discuss the types of motivation that an organization can choose to apply
2. What is the importance of motivation to an institution?

Motivation is the process of causing a drive in the individual to give the

best performance. It’s the psychological process that gives behavior,
purpose and direction. It’s a decision making process through which
individuals chooses outcomes and sets in motion the behavior

11.1 REASONS FOR MOTIVATION

To improve performance
To increase the worker’s morale to

enhance commitment

For change acceptance

Confidence provision and trust
Team building
communication

11.2 HOW TO MOTIVATE

Recognition, workers be appreciated for any achievement realized
Involvement in decision making. this makes workers to own and defend the
decisions taken
Recommend for promotion, when workers know that there are chances for

promotion, they will remain loyal, committed and motivated

Challenging tasks, tasks that are challenging are those that reduces boredom and
56
monotony. They include job enlargement
Delegation, it communicates trust and confidence in the skills possessed. It

from the top to the bottom and it starts with communication

Good working environment, a conducive working conditions if provided

enhances performance and love for work

Security. The need for economic security i.e. the desire to be free for
fear of such things like job loss, demotion and loss of income. Physical
security may also be important
Status, naturally people want their status to be recognized. Status
symbols include cars, big titles, corner offices, club membership,
reserved parking places, carpeting etc.
Responsibility and power. Many people want more responsibility and
may be motivated by the prospect of getting it.
Opportunity for personal growth. This includes training and
development opportunities
Communication. There should be open channels of communication for
free flow of information vertically and horizontally
Teamwork. An organization is a system consisting of many parts which
are interdependent. Managers should recognize all workers as being
important in making contribution as members of the team. People are
likely to work harder if they regard themselves as members of a team
Informal group.
Management styles. The styles that are used either motivates or

demotivates and therefore the right styles be chosen.

11.3 THE ROLE OF NON FINANCIAL INCENTIVES

11.3.1 OPPORTUNITY FOR GROWTH
If the workers of an organization are given chances for upward growth and advances,

they will feel much satisfied and the feeling will cause in them the right commitment

57
11.3.2 PRAISES
They work on one’s ego. The individual becomes satisfied. Praising should only apply to
competent employees in order to encourage the incompetent employees

11.3.3 FEEDBACK
The knowledge of the results leads workers into satisfaction. Naturally workers will like
to know about their performance from their managers

11.3.4 THE WORKERS PARTICIPATION IN MANAGEMENT

Their participation in the management assures them and builds trust and satisfaction is
ultimately achieved. It is also a show that their voice is also heard and considered

11.3.5 COMPETITION
It’s a non-financial incentive which allows a healthy competition among the workers as
individuals and as groups. The i8ncentive makes them to realize the goals as individuals
and as groups

11.3.6 SUGGESTIONS SCHEMES

Its where the workers are appreciated for their good performance by for instance
publishing their names in the company’s new letters and magazines. This boost the
worker’s morale when they discover that names are been read by the new letter
readers and ultimately boost their image and their personal commitment and
performance

Revision questions
1. Discuss the types of motivation that managers can choose from
2. State the importance of motivation
3. Discuss the roles of non-financial rewards
58
Further Reading
1.Bernard M. Bass,” Organizational Decision Making”, Richard Irvin
1983 2. Penning M.,” Decision Making”, Weiner 1983

59
TOPIC TWELVE

12.0 SUPERVISION / LEADING AND CONTROLLING

By the end of the topic you should be able:

a) To highlight the qualities of a supervisor

b) To state what are the roles of the supervisor

c) To describe the controlling process

d) To identify the importance of controlling

A supervisor is a link between the management and the workers.

12.1 PRINCIPLES / QUALITIES OF SUPERVISION

1. Must understand the physical organization of the branch or department including the
duties, responsibilities, powers and their limitations.

2. Have a working knowledge of staff duties?

3. Be responsible for staff training and development.

4. Should plan ahead by knowing the holidays, policy change etc.

5. Should be disciplined before calling for the worker’s discipline.

6. Be loyal to superiors, subordinates and the organization (policies).

7. Exercise judgment in all actions by being analytical.

8. Be cost conscious.

9. Communicate effectively with the staff.

10. Lead by example; (do what you have been told others to do).

11. Strive to create good relationship between the staff and other supervisors.

60
12. Ensure good service is extended to consumers

12.2 ROLES OF A SUPERVISOR

1. Training and coaching.

2. Carrying out communication.

3. motivates the staff or workers.

4. Holds meetings and briefings regularly.

5. He is a custodian of the staff and organization rules.

6. Manages time.

7. Sets performance standards to be realized.

8. Makes decisions.

9. Conducts the performance appraisals for the workers.

10. Carries out induction and orientation.

11. Carries out planning.

12.3 TYPES OF SUPERVISOR’S

1. Job oriented supervisor

He is concerned with application of methods and procedures. And any violation is

punishable.

2. Work oriented supervisor.

He is concerned with the worker’s performance and puts emphasis on quality

performance.

3. Job and work supervisor

He is concerned with both methods and procedures and quality of worker’s
performance.

61
12.4 CO-ORDINATION

Definition: It is developing an integrated and orderly pattern of group efforts to realize a

common goal.

12.4.1 CHARACTERISTICS OF CO-ORDINATION

1. It’s a continuous process.

2. It involves an orderly must respond to organizational policies and objectives.

3. Co-coordinating activities must respond to organizational policies and objectives.

4. Co-coordinating approach should be balanced.

5. It should be based on personal contact, mutual co-operation etc.

6. It should aim at morale boosting.

12.4.2 PRINCIPLES OF CO-ORDINATION

1. The principle of early beginning

It should be started at the earliest possible time when the activities are being performed
and not later when they are nearing completion.
2. The principle of direct contact
There should be personal contact between the one coordinating and that one who is
being coordinated so that any arising questions can be answered and fears ironed out.
3. The principle of feedback
This is where information about the effects of co-ordination is received in order to
identify the strong points, weaknesses and areas that require improvement.

4. The principle of continuity

This is where the exercise is not stopped but continuous over a period of time.

62
12.4.3 ADVANTAGES OF CO-ORDINATION

1. It increases productivity

2. A firm will enjoy the economies of scale.

3. It is a basis of cost reduction.

4. It leads to high profitability levels.

5. It motivates the members of the staff.

6. It reduces high labor turn-over.

7. It enables a firm to survive stiff-competition.

12.5 TECHNIQUES OR METHODS OF CO-ORDINATION

1. Use of commands

This is where orders are given and the follow-up is required to identify disobedient.

2. Use of personal-leadership

This is the ability in one to influence change of behavior in the subordinates where they
willingly accept to perform particular tasks.

3. Communication

Co-coordinators can use communication to give instructions on what is to be done.

4. Use of committees

Committees are so important for they help to co-ordinate activities in their areas.

5. Use of special appointees

Special representatives can represent management on following to find whether the

objectives are being realized or not.

63
Revision question

i. State the difference between supervision and coordination

ii. What is the importance of supervisions?

iii. Discuss the various types of supervisors

iv. What are the methods of coordination?

Further Reading

1. Peter Drucker, “the organization of Behavior, Richards 1998.

2. Richard M., “Management Theory, Process and Practice”, Academic press, New
York, 1993

64
TOPIC THIRTEEN

13.0 STAFFING

By the end of the topic you should be able:

1. To trace the staffing process

2. Highlight the importance of job analysis

3. To differentiate between recruitment and selection

4. To highlight the internal recruitment methods

Definition: This is the employment of the right type of worker in a department or an

organization.

13.1 STEPE IN STAFFING

PROCESS 13.1.1 JOB ANALYSIS
Definition: It is that process of identifying the overall tasks, activities and responsibilities
within an organization.
This helps to picture out the type of persons to perform those tasks.

USES OF JOB ANALYSIS

1. It’s used in employment.

2. It’s used in fixing salaries.

3. It’s used to identify those to undergo training.

4. It’s used to identify those to be promoted.

5. It’s used in identifying the workers who have no respect to the policies, procedures and
methods.

6. It’s a basis for merging departments.

65
13.1.2 THE BARRIERS LIMITATIONS OF JOB ANALYSIS
1. When the workers give conflicting information about their tasks, a job analyst is
forced to use guess work.
2. It requires a lot of time to cover all jobs which is always lacking.
3. If there is change in management the job analysis results may be rejected and
therefore a waste to an organization.
4. When workers do not co-operate with the job analyst then information will be given
rendering the result ineffective.

13.2 RECRUITMENT
Definition: It’s a process of stimulating people to apply for vacancies in an
organization. There are two methods of recruitment i.e.
1. Internal Method.
2. External method.

13.2.1 INTERNAL METHOD / Recruitment at the factory gate.

It’s where vacancies are filled from inside an organization by considering the
employees serving in that organization.

METHODS OF INTERNAL RECRUITMENT

1. Permanent workers
This is where the permanent workers are considered to fill the top level jobs.
2. Casual workers / temporal workers
They are considered in filling lower level jobs.
3. Retrenchment workers
Retrenchment workers can be considered to fill vacancies that have
arisen. 4. Retired workers
This is where the retired are considered for jobs on contractual basis.
5. The deceased dependents
This is where the dependents are given within the organization.

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WHY COMPANIES PREFER INTERNAL RECRUITMENT.
1. It motivates the workers.
2. It is a policy of an organization (rule)
3. To please the trade unions.
4. To reduce the costs in recruitments i.e. advertisements.
5. If the organization wants to maintain their organizational culture.

13.2.2 EXTERNAL RECRUITMENT

It’s filling of the jobs from outside an organization.

METHODS OF EXTERNAL
RECRUITMENT 1. Education institutions
This is where recruitment is done from the colleges where training occurs.

2. Head-hunting
This is where an organization goes for a particular person to fill a
vacancy. It’s always used to fill top level positions.

3. Public agency
This is a recruitment firm that is financed by the state to offer services to organizations
in that state.
The organization does not pay anything.

4. Private agency
This is a privately owned recruitment firm that offers services to organizations at a fee
e.g. man power, price water house coopers.

5. Data banks
This is information about an unsuccessfully applicants that is kept by firms and can be
reverted to when a vacancy arises or the information can be shared by another firm.

67
WHY COMPANIES PREFER EXTERNAL RECRUITMENT

1. If they want to change their organizational culture

2. If they want to earn the society of goodwill.

3. It’s a large pool with trained and experienced people.

4. If the organization desires to get a person associated with success in other places to
their organization.

5. If an organization has a desire of getting competitor workers to inject the secrets of

their former employee to the organization.

6. If it’s the requirement of the state to help in alleviating unemployment and

discrimination.

13.3 SELECTION

It’s the choosing of the right person to be offered a job.

SELECTION METHODS

1. Interviewing
This is face to face interaction with the prospective employee with a view of getting
firsthand information to be used in making a choice.
2. Benchmarking
This is where a comparison is done by considering the applicant’s qualifications by
those of a performing worker before making a choice.

3. Reference checking
This is where the reference is called upon to give information about the applicant before
the decision is done.
4. Tests: Applicants can be given tests and chosen upon passing them.
5. Filling the application blank.
6. Use consultants.
7. Assessment enters.

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13.4 RETENTION
Definition: This is the process of ensuring that the workers are highly motivated so
that they work with the firm for a long time without wishing to leave for other places.

The following factors contribute to retention: -

1. If the organization provides opportunities for training and development of its work
force.
2. Rewards, if workers are given a better salary comparable to other organizations.
3. Job security; if workers are assured of a security of their jobs they will not be willing
to more away but will want to grow with the organization.
4. Filling of vacancies; if vacancies are filled internally then labor turn-over will be
reduced.
5. Rules and policies; the rules and policies must be worker friendly to ensure for their
continual existence.
6. Management practices; if managers use better management practices that are worker
friendly to ensure then the workers will see no reason to want to leave.
7. Better working conditions.
8. Provision of welfare services e.g. house allowance, medical allowance, transport
allowances etc.

Revision questions

i. What are the steps in the staffing process?

ii. Differentiate between internal and external recruitment methods
iii. What is the importance of job analysis?
iv. What are the advantages of external recruitment?

Further Reading
1. Peter Drucker, “the organization of Behavior, Richards 1998.

2. Richard M., “Management Theory, Process and Practice”, Academic press, New
York, 1993

69
TOPIC FOURTEEN

14.0 THE DECISION MAKING PROCESS

By the end of the topic you should be able:

i. To state the types of decisions
ii. To discuss the steps of decision making
iii. Highlight the characteristics of decision making
iv. To identify the barriers to decision making

It is defined as a section of a course of action from among the many. Decision making
is an important element in the planning process. It helps in directing where the
resources should be allocated and whether they have been used well as intended.

14.1 CHARACTERISTICS OF DECISION MAKING

It is always purposed to realize a particular goal or goals.
It is a continuous process which cannot be done once and stopped but is continually carried
out
It comes into picture only when there are many alternatives and therefore only a few
alternatives are to be chosen
It is an intellectual process that is guided by reasoning and analytical thinking It is
carried out by all Managers irrespective of their levels

14.2 TYPES OF DECISIONS

1. OPERATIONAL AND STRATEGIC DECISIONS

Operational decisions are those made by the departmental heads and affects the day to
day running of the departments. They are derived from the organizational decisions made
at the top level. On the other hand, the strategic decisions are made by the top level
managers and affect the entire organization. They relate to the issues of rules, procedures

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etc.

2. PROGRAMMED AND NON PROGRAMMED DECISIONS

These are the decisions that are made on a repetitive nature. They are always made in
consultation with the company’s rules, procedures and policies to ensure that there is no
violation of any kind

3. INDIVIDUAL AND GROUP DECISIONS

In a company setting managers make decisions in their capacity but others they make
them as a group of managers for instance departmental decisions are an example of
individual decision while the strategic decisions affecting the entire organizations are
made many managers at the top level

4 MINOR DECISIONS AND MAJOR DECISIONS

Minor decisions are undertaken by managers but do not have fur reaching implications and
do not commit much of the company’s resources while the major decisions are those made
by managers and they cost an organization dearly. They include starting up projects for the
organization

14.3 STEPS IN THE DECISION MAKING PROCESS

1. DEFINING THE PROBLEM

The problem must be understood well in order to plan a way out. This helps by
avoiding jumping to conclusions based on symptoms instead the true causes be
identified and understood.

2. ANALYSE THE PROBLEM

In the analysis of the problem, the factors that contributed to the problem must be sorted
out, also understand the present situations and their effects in the future. An analysis
must be in line with the objective as far as possible in order to make decision which are
relevant. Personal prejudices and biases should be avoided to make the process more

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credit

3. DEVELOP ALTERNATIVES
These are options or courses of action. A better decision stems from many alternatives
generated as solutions. Better decisions are caused by the manager’s creativity and
imagination

4. EVALUATE ALTERNATIVES
This is where the alternatives are evaluated to find out whether they help solve
the existing problems.
Evaluation is done in order to come out with the ones that achievable, practicable, most
fruitful and less risk ones. The evaluation is meant to prepare a ranking of the alternatives
from the one favored to the least favored.

5 SELECT AND IMPLEMENT THE DECISION

This is where the option that best solves the problem is indeed put into action in order
to alleviate the problem or problems.

14.4 BARRIERS TO EFFECTIVE DECISION MAKING

o The mangers evaluating the problem from a stereo type or pre conceived portion
of The tendency to avoid creativity and new ideas
o Responding to situations with solutions without proper information and knowledge
of Fights and conflicts between the various departmental managers
o Lack of the right skills and experience in those to carry out decision making

14.5 HOW TO AVOID THE DECISION MAKING PROBLEMS

Avoid premature evaluations
Encourage for creativity and analytical thinking
Encourage groups to work as teams and compare their work for learning purposes
Evaluators should do away with bias

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Let there be free flow of information to guide the decision making process

Revision questions
i. what are the basic steps in decision making?
ii. What are the barriers to decision making?
iii. Discuss the types decision by use of examples

Further Reading
1. Peter Drucker,” the organization of Behavior, Richards 1998.

2. Richard M., “Management Theory, Process and Practice”, Academic press, New
York, 1993

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SAMPLE PAPER

Instructions;
Answer all questions

1.a) Give reasons why management is not viewed as an exact science but rather
INEXACT science. 8mks
b) Discuss the other roles that managers do as given out by Prof. Henry Mintzberg 8mks

c) Planning is the most important task for any manager for it sets out what is to be done to
reduce conflict and confusion. What are principles of planning? 10mks
d) State any four principles of organizing 4mks

2. Identify and discuss any FOUR organizational structures that can be used of by any
organization in order to realize the company goals and objectives. 20mks

3.a) What are the benefits of planning for any company 10mks
b) Discuss the steps that should be followed in the planning process 10mks

4. Fredrick Taylor is known as the father of scientific theory of management.

I)What are the objectives of his theory 4mks
ii) Discuss the principles of Fredrick Taylor’s theory 16mks

5. Discuss by use of examples the steps in the decision making process 20mks

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