MULTIMEDIA UNIVERSITY OF KENYA

FACULTY OF SCIENCE AND TECHNOLOGY

FSU 2406-PRINCIPLES OF MANAGEMENT

BRIAN OWEGI NYAMWAYA

SCT-251-037/2020

Question one

a) Critically discuss the major benefits and drawbacks of the scientific school of thought (10
marks)

Benefits:

 Empirical Approach: Science relies on empirical evidence, which makes it a reliable method
for understanding the world. It emphasizes observation and experimentation.
 Objectivity: Science aims for objectivity, minimizing bias and subjectivity. This leads to more
impartial and trustworthy results.
 Progress and Innovation: Scientific thinking drives progress and innovation, leading to
technological advancements and improvements in various fields.
 Systematic Approach: The scientific method provides a systematic framework for solving
problems, allowing for organized and replicable research.
 Collaboration: Science often involves collaboration and peer review, promoting the exchange
of ideas and quality control

Drawbacks

 Reductionism: Scientific study can sometimes oversimplify complex phenomena, potentially

missing the bigger picture.
 Time-Consuming: Scientific research can be time-consuming and costly, limiting the study of
certain topics.
 Ethical Concerns: In some cases, scientific research can raise ethical concerns, such as when
animal testing or human experimentation is involved.
 Uncertainty: Scientific knowledge is always evolving, and there's often a level of uncertainty in
findings, which can lead to conflicting information.

b) Explain the importance of delegation in management (5 marks)

 Effective Resource Utilization: Delegation allows managers to distribute tasks and
responsibilities among team members, optimizing resource utilization and preventing
 overburdening of any one individual.
 Focus on Strategic Activities: Managers can free up time to concentrate on strategic planning,
decision-making, and high-priority tasks by delegating routine and operational
responsibilities.
 Skill Development: Delegation provides an opportunity for employees to develop new skills
and gain experience, which can improve their job satisfaction and career growth
 Employee Empowerment: It empowers employees by giving them a sense of ownership and
responsibility for their work, which can boost motivation and morale.
 Improved Efficiency: Delegating tasks to individuals with relevant expertise can lead to
increased efficiency and better outcomes.
 Succession Planning: Delegation helps identify and prepare potential leaders within an
organization, ensuring a smooth transition when current managers move on or retire.

Question two

a) Briefly discuss factors that may influence the number of staff an organization can employ. (10
marks)

Financial Resources: The organization's budget and financial health are a significant factor. It
determines how many employees an organization can afford to hire, including their salaries, benefits,
and other costs.

Economic Conditions: Economic factors, such as the state of the economy, market demand for the
organization's products or services, and available funding, can impact staffing levels.

Organizational Size and Structure: The size and structure of the organization, including its hierarchy
and the number of departments or teams, affect the staffing needs. Larger organizations typically
require more staff.

Workload and Productivity: The amount of work to be done, as well as the desired level of
productivity, plays a role. An organization with a high workload or ambitious productivity goals may
need more employees.

Technology and Automation: The level of automation and technology in use can influence staffing
needs. Automation may reduce the need for certain roles, while technology might create new
positions.

b) Differentiate between the terms: management and administration (5 marks)

Management is a process of achieving an organization’s goals through co-ordinated performance of

specific functions, that is, planning, organizing, directing, staffing, controlling

Administration is the engagement in long-term planning, resource allocation, and decision-making

that shapes the overall direction and purpose of the organization.
Question three

a) Management in any organization is influenced by various environmental forces. Discuss (10

marks)
 Competitors. A competitor through his actions places a restriction on what an organization
can do e.g. pricing decisions in many companies can affect the pricing decisions of a leading
competitor.
 Technological constraints. It’s a key to organizations affecting the processing speed as well as
the quality of the final output. It affects the transformation processes and gives an
organization a competitive edge.
 Constraints by Education of potential employees .High level education of the available work
force and the availability of the workers with appropriate skills have a direct effect on
management.
 Constraints by Labour unions .Through contracts negotiated with management, labour/trade
unions restrict what management may want to do about wages, vacations, retirement plans,
working conditions and employment policies.
 Public/society. It holds considerable power regarding what an organization can do. It
comprises of the consumers who decide what products wills succeed in the market and it will
depend on their purchasing power. The public can either purchase or boycott the product.
The society ultimately establishes the laws and regulations under which all organizations
operate
b) “Work is just work and it will just happen whether or not it is managed.” Using the
characteristics of management explains to the speaker the nature of management and why it is
important. (5 marks)

Importance of management coordinates to its properties and implies to its importance in all levels of
the organization that include;

 Decision-Making: Managers are responsible for making crucial decisions at different levels of
an organization. These decisions can range from strategic planning to day-to-day operational
choices.

 Efficiency and Effectiveness: Management strives for efficiency (using resources wisely) and
effectiveness (achieving desired results). Balancing these factors is critical for an
organization's success.

 Adaptability: Management needs to adapt to changing internal and external conditions. It

should be flexible and responsive to market trends, technology advancements, and other
evolving factors.
  Coordination: Managers coordinate the activities of different departments and individuals
within an organization to ensure that they work harmoniously towards common goals.

Question four

a) Discuss the main theories of management. Who are the proponents in each category? (10
marks)

Management Theory Z

It was developed in the early 1980s by William Ouchi. It suggests that a flexible managerial approach
with elements of both structured and relaxed organization leads to success. His studies focused on
the success of Japanese and American companies and the differences between the Japanese and
American management systems. Theory Z is an integration of the Japanese and Americans theory.
Ouchi studied successful American companies in order to establish why they continued to succeed
while others were failing. He found out that most American companies followed a set of business
practices which he referred to as (Type A for America and Type J for Japan).Theory Z is based on
certain factors; the ability to guarantee workers longer employment period such as in employee
participation in decision making and policy implementation criteria. Individual responsibility which
should be spelt out clearly.

Behavioral School of Management Theory

This theory was developed because others had neglected the human element in the workplace. It is
considered to be a more people oriented theory. Among the contributors include; Chester l.Bernard
(1886 - 1961), Mary Parker Follet (1868-1933), Hugo Munsterberg (1863-1916), and Prof. Elton Mayo
(1880-1949) who is associated with the Human relation movement (HRM).

Theory X

This theory presents a very pessimistic view of man. It held that; Man inherently hates work and only
work when necessary i.e. when conditions and circumstances compel him to work. He works as a last
result and he will avoid work whenever possible and especially when his basic needs have been met.

Theory Y

This theory presents a more optimistic view of man and work. It supports the behavioural concepts of
man as expressed by human relations movement and other behavioural and modern theories for
motivation. Man’s expenditure of physical energy is as natural to man as when he is resting or at play.
Man naturally likes to work and that’s why he goes out looking for work and not the employer going
out to look for the workers. When people are rewarded on the basis of good performance, they are
willing to direct themselves to achieving the goals of the organization with determination. Man
therefore does not need to be directed. External controls and punishments and threats of
punishments are not necessary towards directing people in achieving the organization goals

b) Identify five (5) basic management skills and explain the major sources of these skills. Do
managers at all levels require these skills? Explain giving examples. (12 marks)

a. Technical Skills They are the skills a manager needs to perform specialized tasks within the
organization. Is the ability to use specific knowledge, techniques and resources in performing work
and includes mastery of methods, techniques and equipment involved in performing specific
functions. They are important for first level managers because they spend most of their time working
and interacting with the operating employees. They must also have a good understanding of the work
being done by the employees it they are to supervise them effectively skilled accounting supervisor
should be able to guide and assist the accounting work of his subordinates and help them in solving
technical/accounting problems experienced at the operational level.

b. Conceptual Skills

It relates to a managers ability to think in abstract. It’s where managers need to see relationships
between forces others aren’t seeing and to understand how a variety of factors are interrelated and
to take a global perspective of the organization and its environment. Involves the manager’s thinking
and planning abilities and the manager takes a broader view of the organization. Top managers
require these skills because they’re responsible for identifying and exploiting new opportunities.

c. Diagnostic skills .These are skills used to define and understand situations. They are applicable to
the top managers. They are moderately important to middle managers and least important to
supervisory managers.

d. Human Relations Skills. Skills a Manager needs to work well with people. They include; ability to
understand one else’s position , ability to present ones position in a reasonable way, ability to
compromise and to deal effectively with conflicts, ability to motivate others, ability to coordinate,
lead, communicate etcetera. A manager with human skills allows subordinates to express themselves
without fear and encourages participation and involvement. They are important to all because at each
level, managers interact and work with people.

e. Stress and Change Management Skills. Nearly all managers work in stressful environment. In the
normal course of doing their jobs, they experience high levels of ambiguity and often try to change
organizations and people resistant to change.