PRINCIPLES AND PRACTICES OF MANAGEMENT NOTES

Topic One: Introduction to Management  Directing and motivating people at work

 Coordinating both physical and human resources
 Meaning of management  Supervising and controlling performance
 Characteristics of management  Securing maximum satisfaction for both employer
 Distinction between management and other disciplines and employees while providing the public with the
best possible services and products
 Distinction between a manager and a leader
 Levels of management
CHARACTERISTICS/ FEATURES OF MANAGEMENT
 Types of skills required to manage a business effectively
 Roles of a manager
 Management is a process. This refers to the process of
 Importance of management
getting thing done working with people to accomplish
 Functions of management  Management is    goal    oriented    thus    aims     at   
achieving organizational goals/objectives
Meaning of management  Management is a group activity. It’s concerned with group
According to McFarland, management is a process which managers efforts and not individual/efforts
create, direct, maintain and operate purposive organizations through  Management is a economic resource as it aims at reaping
systematic coordinated and cooperative human efforts as they seek rich results in economic terms
to achieve predetermined goals.  Principles of management have universal application. Apply
Management has also been defined as the process of planning, more or less in every situation.
organizing, leading and controlling the efforts of organizational  Management is a system of authority. Managers at different
members and using all other resources to achieve stated levels have varying degree of
organizational goals.  Principles of management are dynamic and not static
According to L. Londy, management is principally the task of
 Management is integrative; the essence of management is
planning, coordinating, motivating, and controlling the effort of others
to integrate human and other resources to achieve desired
towards specific objectives.
 Management is both science and an art. Management has
Therefore, management can be defined as the creation and
an organized body of knowledge consisting of well-defined
maintenance of internal environment of an organization, where
concepts, principles and techniques that have a wide
individuals working in groups, are able to perform effectively and
application and thus a science. The application of this
efficiently to achieve goals of an organization. It is the art of getting
concepts principles and techniques requires skills thus
things done through and with people in a formally organized groups.
management is also considered as an art.
It includes the following;

 Formulation of objectives, plans and policies of an

Management as a Science Or an Art Or A Profession
organization
 Assembling people, money, materials, machines
and methods for their achievement There are different viewpoints as to whether management should be
regarded as a science or an art or both. As a matter of fact, the
management is an art as well as a science. This is explained as Management is essentially an art because of the following
follows: reasons:-

A science may be defined as “representing knowledge gathered 1. The process of management involves the use of know how
observation and experiment critically tested, systematized and i.e. skills and knowledge
brought under general principles”  2. Management seeks to achieve concrete practical results i.e.
profit, growth etc
It means that science is an organized or systematized body of 3. Like an art, management is creative it brings out new
theoretical knowledge pertaining to a particular field of enquiry. Such solutions and makes resources productive. Management is
systematized body of knowledge contains concepts, principles and creative since it involves molding and welding the attitudes
theories, which help to explain events and to predict the outcome of and behavior of people at work for the accomplishment of
specific actions. These principles are capable of universal specific goals in a changing environmental
application. 4. Good management is efficient and the success of a manager
is measured the effective realization of organized
Management as a science refers to the application of scientific
methods in making decisions and evaluating different courses of  CONCLUSIONS 
actions. It involves obtaining of complete, valid and reliable
information in respect of the problem under consideration before Management is both an art as well as a science. Essentially
making a decision.  managing is the art of doing and management is the body of
knowledge which underlies the art. It must however be noted that
Management is a science because of the following reasons:- science and art are complementary to each other. Science without
art is sterile and art without science is blind.
1. The principles of management have been developed through
continuous observation and empirical verification The art and science of management go hand in hand. The art of
2. There is a systematized body of knowledge in management management is guided the science of management which in turn
principles are now available in every function of gets nourishment from the practice (art) of management.
management and these principles help to improve
managerial  MANAGEMENT AS A PROFESSION 
3. The principles of management are capable of universal
application A profession can be defined as:
4. Management theory helps to examine and evaluate
alternative courses of action to resolve a given  It is a field where training is intellectual in nature a field in which one
enters for the sake of others and in which financial reward is not
Management as an Art  considered as a measure of success

An art may be defined as skills or knowledge in a particular field of

activity or a method of doing a thing. It means that art involves the
practical application of theoretical knowledge and skills to achieve
desired results. It is concerned with creating of objects or events.
A profession is afield which is supposed to possess a well defined Management is not an a straight profession but it is making stride in
body of knowledge one which is learned intellectual and organized that direction every enterprise presents possibilities for the
one with entry restricted examination or education and one which is application of the art and science of mgt and virtually every business
concerned primarily with service to others above self- reward  is a potential source of employment of professional managers

Management is a profession since it meets the first criteria the body Distinction between a manager and a leader (administrator)
of knowledge requirement this is true from the vocational
understanding of the function of business the general can discipline Sometimes a manager and a leader are considered to be the same
found in typical schools of business, the graduate programs where thing. However, the two may mean different things at times;
functions, organizations, social institutions social responsibilities and
policy are emphasized i. Administration and Management
 According to this approach, administration is a higher level
However management fails the test of professionalism on another activity while management is a lower level function.
criteria. Anybody can label himself a manager and apply it to the Administration involves determining objectives and policies
operation of business. Managers are never self- made instead they
while management is concerned with execution including
are the product of the classroom and research. Education and
training are regarded socially as vital to managerial progression and implemention of policies and direction of efforts towards
success and typically the educated managers are the ones to whom attainment of set objectives within an organization.
positions of power and real responsibility are given Administration is concerned with determination of corporate
policy, coordination of fifnace, production and distribution in
 The question of whether management is a profession is complex an organization while management is concerned with
because mgt is a broad subject parts of the subject do have execution of policy within the limits set up by the
professional characteristics and others do not administration i.e administration set goals while
management strives to achieve them.
 The following criteria of a profession will help to identify those parts
 Administration can also be considerd to be part of
which may be considered to be professional:
management. Management involves effective planning and
guidance of operations in an organization while
 A profession is based on a proven systematic body of
knowledge and thus requires intellectual training administration is part of management responsible with
 A profession maintains an experimental attitude towards undertaking of procedures by which the program is based
information and thus requires a search for new ideas and communicated while checking and regulating activities
 A profession emphasizes service to other and usually against set plans within an organization.
develops a code of ethics that requires that financial return  On the other hand administration and management are
should not be the only considered to be one and the same thing by other school of
 Entrance into a profession is usually restricted standards thought. They consider both to involve guidance, leadership
established an association that requires its members be
and control of efforts of a group of people towards
accepted a group composed with people common training
achienving common goals in an organization. Based on this
approach, both management and administration are based
 CONCLUSION 
 on same set of principles and functions. Therefore the two 1.     Top Management 
can be classified as follows;
o Administrative management In case of a company it consist of the board of directors and chief
o Operative management executives such as general managers, MDs, president, chairman
cum M.D
This involves determinatioin of objectives and policies while
It is the ultimate source of management and it’s the accountable for
operative management is basically concerned with execution of
overall management to the shareholders of the company.
plans towards the achievement of objectives.
 Main functions of top management 
Differences between Entrpreneur and Manager
1. To analyze, evaluate and deal with the environmental forces
2. To establish overall long term goals and policies of the
An entrepreneur is any person at the top of any business
company including the master budget
organization responsible for both financial and legal issues for the 3. To represent the company to the outside world, e.g. trade
success or failure of that business while a manager is an employee associations, government, trade
of the entrepreneur, whose work is to achieve set goals by the 4. To exercise overall review and control on the company’s
entrepreneur. operations
5. To coordinate the activities and efforts of different
The entrepreneur enjoys high degree of freedom than a manager in departments
the same organization. The entrprneur is free to set objectives based 6. To appoint departmental and other key executives.
on personal beliefs and values. For the manager, his beliefs and
2.     Middle Management 
values take backseat as he must work to achieve set objectives.
This level of management consist of deputy heads of departments
Levels of management and sectional officers such as plant manager, are sales manager, or
branch manager, chief accountants, purchase officers etc
The number of levels of management in an organization depends on
its size. This is to ensure that activities at all centres in an These officers serve as a link between top management and
organization are properly planned, organized, directed and operating management. 
controlled. In order to attain maximum efficiency and productivity, the
Functions of middle management 
levels of management should be very minimal. The different levels of
management are explained as below: 1. To interpret and explain the policies framed top and
intermediate managements
1. Top management (strategic level management)
2. Middle level management (tactical level management) 2. To compile and issue detailed instructions regarding
3. Lower level management (supervisory or operating operations
management) 3. To co-operate among themselves so as to integrate various
  parts of a division or a department.
 4. To motivate supervisory personnel to work for organizational These are mental abilities that enable managers to build their
goals businesses in a wholistic manner. They enable managers to think in
5. To develop and train supervisory and operative personnel an abstract manner. It enables them to see relationships with both
  the internal and external environment. These skills increase in
importance as we move up the managerial levels. 
3. Lower /Supervisory/ Operating Management 
It is the lowest level of management. It consist of plant 2. Technical Skills
superintendent foremen and front line supervisors, sales officers, These are abilities to use knowledge and expertise of a particular
accounts officers etc. It serves as the link between management and discipline to achieve the ends of goals. They are as a result of
workers. training and practice.
Since first level managers/supervisors spend most of their time with
 Functions of supervisory management  operating employees, they must have a good understanding of the
work the subordinates perform if they are to supervise them.
1. To plan day to day production with the goals laid down
higher authorities
3. Diagnostic Skills
2. To assign jobs to workers and to make arrangements for
These are skills that enable managers to define and understand
their training and development
situations and circumstances. They assist managers to interpret
3. To supervise and control workers and to maintain personal
situations at hand and take corrective action. They increase in
contact with them
importance as we move up the managerial hierarchy.
4. To arrange material and tools and to maintain machinery
 
5. To advice and assist workers explaining work procedures,
4. Interpersonal Skills/Human Skills
solving their problems etc
These are the abilities to work effectively with others and build
6. To maintain discipline and good human relations among
cooperative group relationships to achieve organizational goals.
workers
7. To report feedback information and workers problems this They entail communication and motivation.
cannot be solved at the supervisory   They enable managers to understand someone else position, to
present one’s own position in reasonable way and assist managers
Managerial Skills in dealing with conflicts and resistance.

A skill is the ability to do something. Hence managerial skills are the These skills have equal importance at all levels.
mixture of talents that managers should possess in order to perform
their roles efficiently. These skills make managers unique and Management Roles
different from their subordinates. Basically there are four managerial Managers at all levels need to plan, organize, lead and control.
skills namely:- However depending on the nature, the organization, the size of the
organization and the levels of management, differences among
1. Conceptual Skills managers in the amount of time they devote to each of these
activities. For example the manager of a big retail store like Uchumi
will spend his time quite differently from the manager of a smaller i. Monitor role/Nerve centre - First he must act as a monitor i.e.
retail outlet like a shop or kiosk. he actively watches the environment for information that
might be relevant to the organization.
Scholars over the years have tried to explain how managers spend ii. Disseminator Role - relaying the information that he has
their time by developing certain roles that managers play at different gathered through monitoring to the appropriate people in the
organization.
levels.
iii. Spokesperson Role - He acts as the representative of the
organization. He gives information to people outside the
Henry Mintzberg analyzed how managers spend their time and came
organization about its performance and policies. E.g. speaks
to the conclusion that there are three basic roles that managers to the community and in professional meetings, prepare
play:- interpersonal roles, informational roles and decisional roles. advertisements etc.

a) Interpersonal Roles c) Decisional Roles

There are three interpersonal roles in the manager's job. These are the roles that managers take when they make decisions
about certain issues.
i. Figurehead. In this role the manager plays a symbolic role.
He carries out a variety of social, legal and ceremonial  Under the decisional roles the manager acts as the
duties. As head of a unit the manager puts in an appearance entrepreneur by looking for opportunities that the
as the representative of the organization by performing organization can pursue to improve itself e.g. a profitable
certain duties or ceremonies e.g. attending an employee’s investment. The manager takes initiative for bringing change
wedding, welcoming guests etc. in his organization. He performs the initiative and informative
ii. A leader. As a leader the manager hires employees, trains, role in the organization.
motivates and encourages them to perform better. The  Disturbance Role - Second the manager acts as the
manager relates with subordinate motivates and develops disturbance handler by resolving conflicts between
them. He is accountable of the activities of subordinates. employees and responding to situations beyond him/her
iii. Interpersonal role of liaison. The manager serves as a control e.g. strikes, bankrupt customers, breach of contract
liaison between the organization and the external
environment. Thus he establishes a network of contacts with etc. The manager deals with problems that arise when
other organization, customers, suppliers etc. organization operations breaks down. He/she is responsible
for the corrective action.
b) Information Roles  Resource allocator role – The manager must act as a
resource allocator by being responsible for deciding how and
According to Mintzberg receiving and communicating information are to whom the resources of the organization and the managers
perhaps the most important aspects of a manager’s job. own time will be allocated. The manager decides who will
get what in the organization. He schedules every activity of
the organization and ensures a balance in operations
allocations of people, money etc.
  Negotiator Role - The manager plays the decisional role of a 9. Self-confidence. A manager should have confidence and take
negotiator. In this role the manager attempts to work out initiative on decision made. He should not fear carrying out his
agreements and contracts that operate in the best interest of duties.
the organization.
Functions of Management
Qualities of A Manager
The process of management consists of several interrelated
The basic job of a manager is the effective utilization of human and activities.  These activities are known as the functions of
other resources to achieve organizational objectives. He lays down management.  There is no universally acceptable classification of
the goals and directs the activities of the group toward effective managerial functions.  However, the following are main functions of
utilization of resources so as to achieve organizational goals. The management.
manager manages work, subordinates and other managers and
materials. In order for a manager to succeed he must possess the 1. Planning
following qualities. It is the primary function of mgt. it involves determining the objectives
and selecting a course of action to achieve them it implies looking
ahead and deciding in advance what is to be done when and where
1. Education – He should be well educated. He should possesss
it is to be done, how and by whom it is done.
both general education and specific education in business It is a mental process requiring the use of intellectual faculties,
management/administration. foresight imagination and sound judgment. It consist of forecaster
2. Training - Managerial skills are acquired through training. decision making and problem solving a plan. It is a predetermined
3. Intelligence – Manager should have an ability to think future course of action, today’s design for tomorrow and an outline of
scientifically ad analyze problems accurately. steps to be taken in future 
4. Leadership –Manager should be able to inspire and channel the
efforts of people toward attainment of organizational goals. The process of planning consist of
(Motivate)
5. Foresight –The manager should be able to foresee problems  Determination of objectives
which might face the business and take necessary measures  Forecasting and choice of a course of action
6. Maturity – A good manager should be emotionally mature and  Formulation of policies programmers budgets schedules etc
have a balanced temperament. He should have high frustration to achieve the objectives
 Laying down of procedures and standards of performance
tolerance.
7. Technical knowledge- A manager should possess peculiar
knowledge to the technique of production being used in the Planning may be long-term or short term. It is a pervasive function
enterprise and managers at all levels have to prepare plans. It is a continuous
8. Human relations attitude. - A manager should be able to or an ongoing process. It enables us to do things in an orderly and
maintain good working relationship with others. He should treat efficient manner. It is helpful in achieving the goals and facing
workers well. uncertainly and change.
2. Organizing  5. Compensation
It is the process of establishing harmonious authority – responsibility, 6. Integration and maintenance of employees
relationships among the members and the enterprise. It is the  
function of creating a structure of duties and responsibilities. The
organization structure serves as the framework within which people 5. Directing 
can work together effectively for accomplishment of common
It is the managerial function of guiding, supervising, motivating and
objectives. It is an important element of management because it is
leading people towards the attainment of planned targets of
through organizing that a manager brings together the material and
performance. It is concerned with execution of plans and policies. It
human resources required for the achievement of goals.
initiates organized actions and sets the whole organizational
The process of organizing consists of the following steps:  machinery into action. It is therefore, the life spark of an organization.

1. Determining and defining the activities required for the Directing embraces the following activities:
achievement of planned goals
2. Grouping the activities into logical and convenient units 1. Issuing orders and instructions
3. Delegating authority to these positions and people 2. Supervising people at work
4. Defining and fixing responsibility for performance 3. Motivating i.e. creating willingness to work for certain
5. Assigning the duties and activities to specific positions and objective.
people 4. Communication i.e. establishing understanding with
6. Establishing horizontal and vertical authority relationships
employees regarding plans and their implementation.
throughout the organization.
5. Leadership or influencing the behavior of employees.
3. Staffing   
It is the process of filling all positions in the organization with
6. Controlling 
adequate and qualified personnel
It is the process of ensuring that the organization is moving in the
According to Koonts and O. Donnel the management function of desired direction and that progress is being made towards the
staffing involves managing organizational structure through proper achievement of goals.
and effective selection, appraisal and development of personnel to fit
The process of controlling s the following steps:
the roles designated in the structure.
1. Establishing standards for measuring work performance
Staffing consists of: 
2. Measurement of actual performance and comparing it with
1. Manpower the standards
2. Recruitment 3. Finding variances between the two and the reasons thereof
3. Selection 4. Taking corrective action for deviations so as to ensure
4. Training attainment of objectives