BUSINESS MANAGEMENT AND

ADMINISTRATION(FRM 464)

Lawrence K. Brobbey (PhD)

[email protected]
0264071939

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 Introduction to the course
• Course objectives
• To train students to understand basic principles of Business
Management and appreciate its importance and effects on all
aspects of business endeavours.
• Learning outcomes
• At the end of this course students will be able to explain basic
principles of Business Management and Administration, and
Entreprenurship and apply them to the functioning of various real-life
businesses.

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 Course contents
• The meaning and nature of Management
• Evolution of Management thought (emergence of theories of
management)
• Functions of Management/ process of Management
• Organisational structure
• The environment of Management/Organizational environment
• Decision making in Business
• Leadership in organisations
• Motivation in organizations
• Entrepreneurship
• Business planning and time management
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 Reading materials

• Lussier, R. (2018) Management Fundamentals - Concepts,

Applications, Skill Development, 8th Edition, Sage publishing, London.
• DuBrin, A. J. (2016) Essentials of Management, 10th Edition, Wessex,
Inc., United States.
• Daft, Richard L. and Marcic, Dorothy (2019) Understanding
Management, 11th Edition, Cengage Learning, United States.

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The meaning and nature of
Management?
Lecture 1

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 What is Management?
• Management has various meanings and interpretations.
• to manage is “to forecast and plan, to organise, to command, to
co-ordinate, and to control” (Henri Fayol)
• “the art of getting things done through people” (Mary Parker
Follet)
• F. W. Taylor (1886) defined management as ‘the determination of
the overall policy of a business organisation’.
• Peter Drucker (1974) states that the job of managers is to give
direction to their organizations, provide leadership, and decide
how to use organizational resources to accomplish goals.

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 Our definition of Management

• Management is the attainment of organizational

goals in an effective and efficient manner through
planning, organizing, leading, and controlling
organizational resources.

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 Two key ideas of the definition
1. The four primary management functions
• Planning
• Organizing
• leading, and
• controlling
2. The attainment of organizational goals in an effective
and efficient manner.

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 Management process

Management Functions

Planning

Select goals and

ways to attain
them
Resources Performance
• Human
• Financial Controlling Organizing • Attain goals
• Raw Materials • Products
Monitor activities Assign responsibility
• Technological for task
• Services
• Information and make • Efficiency
accomplishment
corrections • Effectiveness

Leading

Use influence to
motivate
employees

Figure illustrates the process of how managers use resources to attain organizational goals
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 Effectiveness vs. Efficiency
• Organizational effectiveness:
• The degree to which the organization achieves stated goals, or
succeeds in accomplishing what it tries to do

• In other words, effectiveness is achieved when the

organization pursues appropriate goals.

• This means “doing the right thing.”

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 Effectiveness vs. Efficiency …

• Organizational efficiency relates to the amount of resources used to

achieve an organizational goal.
• It is the use of minimal resources—raw materials, money, and
people—to produce a desired volume of output.
• In other words, efficiency is achieved by using the fewest inputs (e.g.,
people and money) to generate a given output.

• This means “doing things right.”

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 Effectiveness vs. Efficiency …

• Efficiency is defined as the

ability to accomplish something
with the least amount of wasted
time, money, and effort or
competency in performance.
• Effectiveness is defined as the
degree to which something is
successful in producing a desired
result; success

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 Effectiveness vs. Efficiency …

• The end result of effective and efficient management is organizational

success.
• Efficiency and effectiveness can both be high in the same
organization.
• However, sometimes managers’ efforts to improve efficiency can hurt
organizational effectiveness.
• This is especially true in relation to severe cost cutting.

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 Organizational Performance

• The ultimate responsibility of managers is to achieve high

performance.

• Performance is the attainment of organizational goals by using

resources in an efficient and effective manner.

• Simply put, Performance is the organization’s ability to attain its goals

by using resources in an efficient and effective manner.

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 Management skill

• A manager’s job is complex and multidimensional and,

therefore, requires a range of skills.
• The necessary skills for managing a department or an
organization can be summarized in three categories
• Conceptual skills
• Human skills
• Technical skills

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 Management skill …

• The application of these skills changes as managers

move up in the organization.

• Although the degree of each skill necessary at

different levels of an organization may vary, all
managers must possess skills in each of these
important areas to perform effectively.

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Relationship of Conceptual, Human, and Technical Skills
to Management Level

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 Conceptual Skills
• Conceptual skill is the ability to view the complexities of the
operations of the organisation as a whole, including
environmental influences.
• It involves knowing where one’s department fits into the total
organization and how the organization fits into the industry, the
community, and the broader business and social environment.
• It means the ability to think strategically - to take the broad,
long-term view.
• Conceptual skills are needed by all managers but are especially
important for managers at the top.

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 Human Skills
• Human skill is the manager’s ability to work with and
through other people and to work effectively as a group
member.
• This skill is demonstrated in the way a manager relates to
other people, including the ability to motivate, facilitate,
coordinate, lead, communicate, and resolve conflicts.
• A manager with human skills allows subordinates to express
themselves without fear of ridicule and encourages
participation.

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 Human Skills

• A manager with human skills likes other people and is liked

by them.
• Human skills are important for managers at all levels, and
particularly for those who work with employees directly on a
daily basis.
• Organizations frequently lose good employees because of
front-line bosses who fail to show respect and concern for
workers.

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 Technical Skills
• Technical skill is the understanding of and proficiency in the
performance of specific tasks.
• It includes mastery of the methods, techniques, and
equipment involved in specific functions such as engineering,
manufacturing, or finance.
• It also includes specialized knowledge, analytical ability, and
the competent use of tools and techniques to solve problems
in that specific discipline.

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 Technical Skills

• Technical skills are particularly important at lower

organizational levels.
• Many managers get promoted to their first
management jobs by having excellent technical skills.
• However, technical skills become less important than
human and conceptual skills as managers move up the
hierarchy.

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 Management types
(Dimensions or levels of management)
• Managers use conceptual, human, and technical skills to
perform the four management functions of planning,
organizing, leading, and controlling in all organizations
–But all managers do not perform the same job.
• Managers are responsible for different departments, work at
different levels in the hierarchy, and meet different
requirements for achieving high performance.

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 Management types …

• For example:
• a middle manager and a chief executive officer (CEO) are both
managers, and both must contribute to planning, organizing,
leading, and controlling their organizations—but in different ways
and to different extents

• Differences in management jobs occur both vertically and

horizontally across the organization.

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 Management types …
Vertical Differences
• An important determinant of the manager’s job is
hierarchical level.

• Three levels in the hierarchy are:

• Top-level management
• Middle-level management
• Lower-level management (First-line managers /Front-line
managers)

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 Top-level management
• Top managers are at the highest level of the hierarchy and
are responsible for the entire organization.
• They have such titles as President, Chairperson, Executive
Director (ED), Chief Executive Officer (CEO), and Executive
Vice-president.
• Top managers are responsible for:
• setting organizational goals,
• defining strategies for achieving goals
• monitoring and interpreting the external environment
• making decisions that affect the entire organization
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 Top-level management …
• They look to the long-term future and concern themselves
with general environmental trends and the organization’s
overall success.
• Among the most important responsibilities for top managers
are:
• communicating a shared vision for the organization
• shaping corporate culture
• nurturing an entrepreneurial spirit that can help the company
keep pace with rapid change.
• Top managers are involved in Strategic Management

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 Middle-level management:
• Middle managers work at middle levels of the organization
and are responsible for business units and major
departments.
• Examples of middle managers are department head, division
head, manager of quality control, etc.
• They are responsible for implementing the overall strategies
and policies defined by top managers.
• Middle managers are generally involved in Tactical
Management.

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Lower-level management (Front-line managers/
First-line managers):
• They are directly responsible for the production of goods and
services.
• They are the first or second level of mgt.
• They have such titles as supervisor, line manager, section
chief, and office manager.
• They are responsible for groups of non-management
employees.
• They are primarily concerned with accomplishing day-to-day
goals.
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30
 Management level Key tasks
Top Managers (CEO, President, Decision makers – setting
Chairperson, Executive Director, etc.) organizational goals, defining
strategies, etc.
Middle Managers (Department Head, Responsible for business units and
Division Head, Manager of quality major departments.
control, etc.) Responsible for implementing the
overall strategies and policies
defined by top managers.
First-line Managers (Supervisor, Line Directly responsible for the
Manager, Section Chief, etc.) production of goods and services.
Responsible for groups of non-
management employees.

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 Management types…
Horizontal Differences
• The other major difference in management jobs occurs
horizontally across the organization.
• Functional managers:
• responsible for departments that perform a single functional
task and have employees with similar training and skills.
• Functional departments include advertising, sales, finance,
human resources, manufacturing, and accounting.

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 Management types…
• Line managers:
• are responsible for the manufacturing and marketing
departments that make or sell the product or service.

• Staff managers:
• are in charge of departments such as finance and
human resources that support line departments.

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 Management types…

• General Managers:
• responsible for several departments that perform
different functions.
• responsible for a self-contained division, and for all of
the functional departments within it.
• Project managers also have general management
responsibility, because they coordinate people across
several departments to accomplish a specific project.

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 Interrelated management tasks
• Managers essentially face three interrelated managerial
tasks. These tasks include:
• Managing work and organisations:
–managers make sure the work of the organisation gets done and
the organisation itself is managed.
• Managing people.
• Managing production and operations:
–this relates to the process of managing the organisation’s output.

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