Unit 1: Fundamentals of Management

Learning Outcomes:

· Students will be able to define the concept of management, including its key funcƟons and
principles.

· Students will be able to explain the historical development of management theories.

· Students will be able to analyse various managerial processes and their importance.

· Students will be able to apply basic management principles to real or hypotheƟcal scenarios.

· Students will be able to evaluate the roles and skills of a manager in organisaƟonal contexts.

Structure:

1.1 IntroducƟon to Management

1.2 EvoluƟon of Management Thought

1.3 Managerial Processes

· Knowledge Check 1

· Outcome-Based AcƟvity 1

1.4 Principles of Management

1.5 FuncƟons of a Manager

1.6 Skills of a Manager

1.7 Roles of a Manager in an OrganizaƟon

· Knowledge Check 2

· Outcome-Based AcƟvity 2

1.8 Summary

1.9 Keywords

1.10 Self-Assessment QuesƟons

1.11 References / Reference Reading

Understanding the basics of management is a fundamental aspect of business and organisaƟonal
studies. Management, at its core, involves organising and coordinaƟng acƟviƟes to reach specific
goals. This process is pivotal in various seƫngs, from business organisaƟons to non-profits and
government bodies. It's not just confined to professional scenarios; management principles can also
be applied in personal life situaƟons.

Management is a dynamic and adapƟve ongoing process. It requires a proacƟve approach,

anƟcipaƟng changes and preparing for new challenges. This is parƟcularly important in a rapidly
evolving business landscape, where adaptability is key to success.

· DefiniƟon and Meaning of Management

Management can be defined as the process of planning, decision-making, organising resources,

leading teams, and overseeing operaƟons to ensure organisaƟonal efficiency and effecƟveness. This
definiƟon encompasses a broad range of acƟviƟes and responsibiliƟes, making management a
mulƟfaceted field.

The goal-oriented nature of management is a defining characterisƟc. Whether in a large corporaƟon

or a small community group, management focuses on achieving predefined objecƟves. This focus
ensures that all efforts are channelled towards achieving these goals, enhancing efficiency and
effecƟveness.

· Nature and CharacterisƟcs of Management

The nature of management is characterised by several key aspects:

1. Universal ApplicaƟon: The principles of management apply across various fields and cultures. This
universality makes the study of management highly relevant and pracƟcal, as the skills and
knowledge gained are widely applicable.

2. SystemaƟc and Structured Approach: Management involves a series of steps like planning,
organising, staffing, leading, and controlling. This structured approach helps in managing complex
tasks effecƟvely.

3. MulƟdimensional: Management is not just about handling business operaƟons; it includes

planning strategies, allocaƟng resources, guiding teams, making decisions, and evaluaƟng
performance. These diverse roles highlight the comprehensive nature of management.

4. IntegraƟve: It combines people, processes, and resources towards achieving set goals. This aspect
emphasises the importance of teamwork, coordinaƟon, and understanding the interplay between
various organisaƟonal funcƟons.
5. Responsive to a Dynamic Environment: Managers must stay informed about market trends and
societal changes to make sound decisions, keeping their organisaƟons compeƟƟve and relevant.

6. Balancing EffecƟveness and Efficiency: EffecƟveness in management means seƫng and achieving
the right goals, while efficiency involves opƟmal uƟlisaƟon of resources. Striking a balance between
these two is crucial for successful management.

· Significance of Management in OrganizaƟons

1. Achieving OrganisaƟonal Goals: The primary significance of management lies in its ability to help
organisaƟons set and achieve their goals. Through careful planning and strategic decision-making,
management ensures that organisaƟonal objecƟves are met efficiently and effecƟvely.

2. OpƟmising Resource UƟlisaƟon: Efficient management is key to opƟmising the use of resources,
whether they are human, financial, technological, or natural. Managers ensure that resources are
allocated judiciously, avoiding wastage and maximising value for the organisaƟon.

3. AdapƟng to Market Changes: In a dynamic business environment, adaptability is crucial.

Management plays a pivotal role in guiding organisaƟons through changes, whether they are
technological advancements, market shiŌs, or socio-economic changes. This adaptability ensures the
long-term sustainability of the organisaƟon.

4. Fostering InnovaƟon and Development: Good management encourages innovaƟon by creaƟng an

environment where new ideas are welcomed and nurtured. This aspect of management is criƟcal for
organisaƟons to stay compeƟƟve and relevant in their respecƟve industries.

5. Managing Complexity: As organisaƟons grow, they become more complex. Management helps
simplify this complexity by seƫng up clear structures, processes, and hierarchies, making it easier for
employees to navigate their roles and responsibiliƟes.

6. Crisis Management: In Ɵmes of crisis, effecƟve management is crucial. Managers are responsible
for devising and implemenƟng strategies to navigate through challenging situaƟons, minimising the
impact on the organisaƟon.

Role of Management in OrganisaƟons

1. Planning and Strategy: Managers are responsible for seƫng goals, defining strategies, and
planning how to achieve these objecƟves. This involves analysing current market trends, forecasƟng
2. Organizing Resources: Management involves organising the available resources most efficiently.
This includes not only physical resources but also human resources, ensuring that the right people
are in the right jobs and are effecƟvely contribuƟng to the organisaƟon's objecƟves.

3. DirecƟng and Leading: A key role of management is to provide direcƟon and leadership. Managers
inspire and moƟvate their teams, fostering a posiƟve work environment and guiding employees
towards achieving organisaƟonal goals.

4. Controlling and EvaluaƟng: Management is responsible for seƫng performance standards,

monitoring progress, and making necessary adjustments. This control mechanism ensures that the
organisaƟon is on track to meet its objecƟves and allows for correcƟve acƟon when necessary.

5. Decision Making: Managers make numerous decisions, big and small, that affect the organisaƟon's
course. This involves weighing different opƟons, considering the potenƟal impacts, and choosing the
best course of acƟon.

6. CommunicaƟng and Liaising: EffecƟve communicaƟon is a criƟcal role of management. Managers

must communicate goals, policies, and decisions clearly and effecƟvely. They also act as liaisons
between different levels of the organisaƟon, ensuring that there is alignment and understanding
across the board.

1.2 EvoluƟon of Management Thought

The evoluƟon of management thought is a fascinaƟng journey through Ɵme, reflecƟng the changing
dynamics of the business world and societal shiŌs. This evoluƟon can be broadly categorised into
three major phases: Classical Management Theories, the Human RelaƟons Movement, and
Contemporary Management Theories. Each of these phases has significantly contributed to our
current understanding and pracƟce of management.

· Classical Management Theories

Classical Management Theories emerged in the late 19th and early 20th centuries, a Ɵme when
organisaƟons were seeking ways to improve producƟvity and efficiency. These theories primarily
focused on the formal organisaƟon and basic management processes.
1. ScienƟfic Management: Pioneered by Frederick Taylor, this approach emphasised the scienƟfic
study of tasks and the workers' performance to improve work efficiency. Taylor proposed the idea of
systemaƟc training of workers and the division of labour. His principles were centred around the
concept of maximising producƟvity and reducing labour waste.

2. AdministraƟve Management: Henri Fayol is a key figure in this area. He focused on the
management process and principles that could be applied to a range of organisaƟonal seƫngs. Fayol
introduced basic managerial funcƟons—planning, organising, commanding, coordinaƟng, and
controlling. His work emphasised the importance of managerial pracƟces in achieving organisaƟonal
efficiency and effecƟveness.

3. BureaucraƟc Management: Max Weber contributed to this perspecƟve with his emphasis on
structuring organisaƟons in a hierarchical manner with clear rules and roles. Weber's model of
bureaucracy underlined the need for a raƟonal, efficient, and professional management style based
on clearly defined authority and responsibility.

· Human RelaƟons Movement

The Human RelaƟons Movement emerged in the 1930s as a reacƟon to the oŌen mechanical nature
of the Classical approach. This movement highlighted the importance of human factors in
organisaƟonal success.

1. Emphasis on Human Element: Spearheaded by Elton Mayo and his famous Hawthorne Studies,
this movement stressed the importance of social relaƟons and employee well-being in the
workplace. Mayo's research showed that worker producƟvity increased when their social and
emoƟonal needs were met, suggesƟng that human behaviour and the social environment play a
crucial role in the workplace.

2. MoƟvaƟon and Leadership: The Human RelaƟons Movement led to further studies on leadership
styles, moƟvaƟon, team dynamics, and organisaƟonal culture. It shiŌed the focus from strict rules
and hierarchy to a more parƟcipaƟve and people-oriented approach.

· Contemporary Management Theories

Contemporary Management Theories have developed in the laƩer part of the 20th century and
conƟnue to evolve. These theories incorporate a diverse range of perspecƟves and approaches,
reflecƟng the complexiƟes of modern organisaƟons.

1. Systems Theory: This approach views the organisaƟon as a system composed of interrelated parts.
It emphasises the importance of understanding the interdependencies and the impact of external
environments on the organisaƟon.
2. ConƟngency Theory: This theory suggests that there is no one best way to manage. Instead, the
opƟmal course of acƟon is conƟngent (dependent) upon the internal and external situaƟon. It
encourages managers to analyse the situaƟon and adopt the most suitable management approach.

3. Total Quality Management (TQM) and Lean Management: These are examples of contemporary
approaches focusing on conƟnuous improvement, customer saƟsfacƟon, and reducing waste. They
emphasise the involvement of all employees in quality improvement and process efficiencies.

4. Technology and InnovaƟon Management: With the advent of informaƟon technology and
globalisaƟon, new theories have emerged that focus on managing technological innovaƟon, digital
transformaƟon, and global teams.

The evoluƟon of management thought, from classical theories to the human relaƟons movement
and contemporary approaches, reflects an ongoing journey towards understanding the complexiƟes
of managing organisaƟons. Each phase has contributed valuable insights and tools, shaping the
diverse and dynamic field of management as we know it today.

1.3 Managerial Processes

Building on the foundaƟonal concepts of management and its evoluƟon, we delve into the crucial
aspects of managerial processes, parƟcularly focusing on planning and decision-making, as well as
organising and delegaƟng. These processes are essenƟal for effecƟve management and play a pivotal
role in ensuring the smooth operaƟon and success of an organisaƟon.

· Planning and Decision Making

Planning is a fundamental managerial process that involves seƫng objecƟves and determining the
best course of acƟon to achieve these objecƟves. It's a forward-looking acƟvity, essenƟal in every
aspect of management, from strategic to operaƟonal levels.

1. Seƫng ObjecƟves: The first step in planning is to define clear, achievable goals. These objecƟves
provide direcƟon and a sense of purpose. They should be aligned with the organisaƟon's overall
vision and mission.

2. Developing Strategies: Once objecƟves are set, managers need to formulate strategies to achieve
these goals. This involves analysing internal and external environments, evaluaƟng resources, and
considering various opƟons. Strategies could range from broad approaches to specific tacƟcs.

3. Decision Making: Integral to planning is decision-making. Managers need to make informed

decisions by gathering data, evaluaƟng alternaƟves, and considering their potenƟal impact. EffecƟve
decision-making requires a balance of intuiƟon, analysis, and reasoned judgment. It's about choosing
a course of acƟon from mulƟple possibiliƟes and commiƫng resources to it.

Decision-making in management is not a one-Ɵme acƟon but an ongoing process. It involves

conƟnuous monitoring and reassessment to ensure that the chosen strategy remains relevant and
effecƟve in achieving the set objecƟves.

· Organising and DelegaƟng

Organising is the process of arranging resources and tasks to achieve the organisaƟon's goals. This
involves designing a framework that determines how people, jobs, and tasks are grouped,
coordinated, and communicated.

1. Structuring Work: Organising involves developing an organisaƟonal structure that aligns with the
strategy and objecƟves. This includes determining what tasks need to be done, who will do them,
how they are grouped, who reports to whom, and where decisions are made.

2. Resource AllocaƟon: Organising also entails allocaƟng resources (like manpower, materials, and
money) efficiently across the organisaƟon. It's about ensuring that the right resources are available
at the right Ɵme and place to accomplish tasks effecƟvely.

3. DelegaƟng: A criƟcal part of organising is delegaƟng authority and responsibility. DelegaƟon

involves assigning tasks to employees and giving them the authority to complete those tasks.
EffecƟve delegaƟon not only empowers employees but also fosters a sense of responsibility and
improves efficiency.

DelegaƟng requires trust in employees' abiliƟes and judgment. It also involves providing clear
instrucƟons, seƫng expectaƟons, and offering support and feedback. Good delegaƟon helps in
developing employees' skills, reducing managerial overload, and ensuring that tasks are completed
efficiently.

· Leading and MoƟvaƟng

Leading involves influencing and guiding team members towards achieving organisaƟonal goals. It's
about providing direcƟon, creaƟng a vision, and inspiring employees to follow that vision.

1. Leadership Styles: EffecƟve leaders adapt their leadership style to the needs of their team and the
situaƟon. Styles can range from autocraƟc to democraƟc, from transacƟonal to transformaƟonal. The
choice of style depends on various factors, including organisaƟonal culture, team dynamics, and
individual personaliƟes.
2. CommunicaƟon: A key aspect of leading is effecƟve communicaƟon. Leaders must be able to
clearly convey ideas, instrucƟons, and feedback. Good communicaƟon also involves listening to
employees, understanding their concerns, and addressing them appropriately.

3. Inspiring and MoƟvaƟng: Leaders are responsible for moƟvaƟng their team members. This
involves understanding what drives each individual, whether it's recogniƟon, career growth, or
financial rewards. Leaders use this understanding to inspire and moƟvate their team, fostering a
posiƟve work environment and encouraging high performance.

4. Building Teams: EffecƟve leaders also focus on building cohesive teams. They encourage
collaboraƟon, respect diversity, and promote a sense of unity. By nurturing a strong team spirit,
leaders enhance producƟvity and employee saƟsfacƟon.

· Controlling and Performance EvaluaƟon

Controlling is a managerial process that involves monitoring and evaluaƟng the organisaƟon's
progress towards its goals. This process ensures that the organisaƟon stays on track and makes
necessary adjustments.

1. Seƫng Performance Standards: The first step in controlling is to establish performance standards.
These standards, derived from the organisaƟon's objecƟves, provide a benchmark against which
actual performance can be measured.

2. Monitoring and Measuring Performance: Managers need to conƟnuously monitor and measure
performance against these standards. This involves collecƟng and analysing data, observing
operaƟons, and assessing whether goals are being met.

3. CorrecƟve AcƟon: If discrepancies are found between actual and desired performance, managers
must take correcƟve acƟon. This could involve adjusƟng strategies, redirecƟng efforts, or providing
addiƟonal resources and support.

Performance evaluaƟon is a crucial part of the controlling process. It involves assessing employee
performance and providing feedback.

1. Regular Feedback: Providing regular and construcƟve feedback helps employees understand how
they are performing and what improvements are needed. It's also an opportunity to recognise and
reward good performance, which further moƟvates employees.

2. Development and Improvement: Performance evaluaƟons should not just focus on past
performance but also on future development. Managers can use these evaluaƟons to idenƟfy
training needs, career development opportuniƟes, and ways to enhance employees' skills.

Leading and moƟvaƟng, as well as controlling and performance evaluaƟon, are integral managerial
processes that complement planning, organising, and delegaƟng. EffecƟve leadership drives the
workforce towards excellence, while control and performance evaluaƟon ensure that organisaƟonal
goals are consistently met and adjusted according to changing circumstances. These processes
highlight the dynamic and interacƟve nature of management, where conƟnuous engagement,
assessment, and improvement are key to organisaƟonal success.
· Knowledge Check 1

Fill in the Blanks

1. The __________ Management Theory, developed by Frederick Taylor, emphasises the scienƟfic
study of tasks to improve worker efficiency. (ScienƟfic/ AdministraƟve)

2. In the Human RelaƟons Movement, the Hawthorne Studies were led by __________, focusing on
the impact of social relaƟons and employee well-being. (Max Weber/ Elton Mayo)

3. The managerial process that involves seƫng objecƟves and determining the best course of acƟon
is known as __________. (Planning/ Controlling)

4. Henri Fayol introduced the concept of __________, which includes basic managerial funcƟons like
planning, organising, commanding, coordinaƟng, and controlling. (BureaucraƟc Management/
AdministraƟve Management)

· Outcomes-Based AcƟvity 1

Reflect on a successful company or organisaƟon you admire and idenƟfy which management theory
(Classical, Human RelaƟons, or Contemporary) appears most influenƟal in its operaƟons, and briefly
explain why.

1.4 Principles of Management

The principles of management form the foundaƟon upon which the managerial funcƟons of
planning, organising, leading, and controlling are built. These principles have evolved over Ɵme,
shaped by various theories and the changing dynamics of the business world. Understanding these
core principles and their applicaƟon in various contexts is essenƟal for effecƟve management.

· Core Principles and Theories of Management

Management principles are guidelines that influence management decisions and acƟons. These
principles have been developed through years of study and observaƟon, and they help managers
navigate the complex organisaƟonal environment.

1. Division of Work: Emphasised by Henri Fayol, this principle advocates that specialisaƟon increases
output by making employees more efficient. Dividing work among individuals and teams ensures
that effort and aƩenƟon are focused on specialised secƟons of the process.

2. Authority and Responsibility: This principle involves the right to give orders and the power to
exact obedience. With authority, however, comes responsibility. This balance is crucial for
maintaining order and ensuring accountability within the organisaƟon.

3. Discipline: Good discipline is essenƟal for smooth organisaƟonal funcƟoning. This principle
focuses on respect for agreements which govern the organisaƟon, ensuring that employees adhere
to rules and procedures.

4. Unity of Command: According to this principle, each employee should receive orders from only
one superior. This reduces confusion and conflicts due to conflicƟng instrucƟons from mulƟple
superiors.

5. Unity of DirecƟon: This principle states that the organisaƟon should have a single plan of acƟon to
guide managers and workers in all their efforts. When all parts of an organisaƟon work towards a
common objecƟve, efficiency is increased.

6. SubordinaƟon of Individual Interests to the General Interest: The interest of the organisaƟon
should not become secondary to individual interests or the interest of a group of employees.

7. RemuneraƟon: Employees must be fairly compensated for their services. This is not just a maƩer
of fairness but also a strategic tool for moƟvaƟng staff and improving producƟvity.

8. CentralisaƟon and DecentralisaƟon: This principle refers to the extent to which authority is
distributed or concentrated. EffecƟve management involves finding the right balance between
centralisaƟon and decentralisaƟon.

9. Scalar Chain: This principle refers to the chain of superiors ranging from the highest to the lowest
ranks. It should be clear and respected to ensure effecƟve communicaƟon and authority within the
organisaƟon.

10. Equity: Employees must be treated justly in all aspects of their employment. Equity fosters
These core principles of management are not just theoreƟcal concepts; they have pracƟcal
applicaƟons in various organisaƟonal seƫngs.

1. Business OrganisaƟons: In corporaƟons, these principles guide everything from producƟon

processes to human resource management, ensuring that operaƟons run smoothly, efficiently, and
effecƟvely.

2. Non-profits and NGOs: In these organisaƟons, management principles help in coordinaƟng the
efforts of volunteers and limited resources towards achieving the non-profit's mission and objecƟves.

3. Startups and Small Businesses: Here, principles like unity of command and direcƟon, as well as
effecƟve delegaƟon, are crucial for managing limited resources and navigaƟng the challenges of
growth and market compeƟƟon.

4. Public Sector and Government: Principles of equity, discipline, and subordinaƟon of individual
interests to the general interest are parƟcularly relevant in the public sector, where accountability
and public service are paramount.

5. Global OrganisaƟons: In these contexts, understanding and applying principles like centralisaƟon
vs. decentralisaƟon and authority and responsibility are key to managing across different cultures
and regulatory environments.

The principles of management provide a framework that helps managers and leaders to make
decisions, strategies, and navigate the challenges of organisaƟonal life. These principles are Ɵmeless
and universal, applicable across various types of organisaƟons and in different contexts.
Understanding and effecƟvely applying these principles is fundamental to successful management.

· EvoluƟon of Management Principles Over Time

The evoluƟon of management principles over Ɵme reflects the changing needs, challenges, and
understanding of organisaƟonal dynamics and human behaviour in the workplace. From the early
days of classical theories to contemporary approaches, management principles have conƟnuously
adapted and evolved to meet the demands of an ever-changing business landscape.

Early Management Principles: Classical Theories

The incepƟon of formal management principles can be traced back to the late 19th and early 20th
centuries, during the Industrial RevoluƟon. The need for efficient factory management led to the
development of classical management theories.
1. ScienƟfic Management: Pioneered by Frederick Taylor, this approach focused on increasing
producƟvity through scienƟfic analysis of work and workers. It introduced Ɵme studies, standardised
tools and processes, and incenƟve systems.

2. AdministraƟve Management: Henri Fayol developed this theory, which emphasised management
funcƟons (planning, organising, commanding, coordinaƟng, and controlling) and principles (division
of work, authority and responsibility, discipline, unity of command, etc.). Fayol's work laid the
foundaƟon for modern management pracƟces.

3. BureaucraƟc Management: Max Weber's concept of bureaucracy introduced a structured and

formalised organisaƟonal hierarchy, aimed at ensuring efficiency and consistency in management.

Human RelaƟons Movement: Emphasising People

In the 1930s, the Human RelaƟons Movement emerged as a response to the mechanical nature of
the classical approach. Led by Elton Mayo and others, this movement shiŌed the focus to the social
and psychological aspects of work.

1. Social Needs and Job SaƟsfacƟon: The Hawthorne Studies revealed that social relaƟons, employee
morale, and job saƟsfacƟon significantly impact producƟvity.

2. Leadership and MoƟvaƟon: This period saw an emphasis on leadership styles, moƟvaƟon theories,
and the importance of effecƟve communicaƟon and team dynamics.

Contemporary Management Principles: Adaptability and Diversity

As the business world became more complex, contemporary theories began to develop, focusing on
adaptability, environmental changes, and the diversity of organisaƟonal forms.

1. Systems Theory: This theory views the organisaƟon as an open system interacƟng with its
environment, emphasising the importance of external factors and internal interdependencies.

2. ConƟngency Theory: SuggesƟng that there is no one-size-fits-all approach, this theory posits that
organisaƟonal strategies and structures depend on various external and internal factors.

3. Total Quality Management (TQM) and Lean Management: These approaches focus on conƟnuous
improvement, customer saƟsfacƟon, and efficient use of resources, involving all employees in the
quality process.

4. Technology and InnovaƟon Management: The rapid development of technology necessitated new
management principles focusing on innovaƟon, digital transformaƟon, and managing in a globalised,
interconnected world.

EvoluƟon in the 21st Century: Agility and Sustainability

In recent Ɵmes, management principles have conƟnued to evolve, emphasising agility, sustainability,
and ethical pracƟces.

1. Agile Management: With the rise of the tech industry and start-up culture, agile management
pracƟces, which emphasise flexibility, rapid iteraƟon, and cross-funcƟonal teams, have become
increasingly popular.
2. Sustainable and Ethical Management: Growing concerns about environmental and social issues
have led to principles that emphasise sustainable pracƟces, corporate social responsibility, and
ethical decision-making.

3. GlobalisaƟon and Cultural SensiƟvity: As organisaƟons become more global, understanding and
managing cultural diversity and internaƟonal dynamics have become crucial management skills.

The evoluƟon of management principles over Ɵme reflects a shiŌ from rigid, standardised
approaches focused on tasks and producƟvity, to more flexible, people-oriented approaches that
consider a broad range of environmental, technological, and ethical factors. This evoluƟon
underscores the need for modern managers to be adaptable, culturally sensiƟve, and ready to
embrace new challenges and opportuniƟes in an increasingly complex and interconnected world.

1.5 FuncƟons of a Manager

The role of a manager in any organisaƟon is mulƟfaceted, encompassing a range of funcƟons

essenƟal for achieving organisaƟonal goals. Among these, two primary funcƟons stand out: planning,
which involves seƫng goals and formulaƟng strategies, and organising, which entails structuring and
coordinaƟng resources and acƟviƟes. Understanding these funcƟons in detail provides insight into
the criƟcal role managers play in steering their organisaƟons towards success.

· Planning: Seƫng Goals and Strategies

Planning is oŌen considered the foremost funcƟon of a manager. It sets the foundaƟon for all
subsequent managerial acƟviƟes.

1. Seƫng Goals: The first step in the planning process is seƫng clear, achievable goals. These goals
should align with the organisaƟon's overall mission and vision. They provide direcƟon

and a sense of purpose, guiding the organisaƟon in its decision-making and acƟons. EffecƟve goals
are usually specific, measurable, aƩainable, relevant, and Ɵme-bound (SMART).

2. Developing Strategies: Once goals are established, managers need to devise strategies to achieve
these objecƟves. This involves a thorough analysis of internal and external environments to
understand the organisaƟon's strengths, weaknesses, opportuniƟes, and threats (SWOT analysis).
Strategies may encompass broad organisaƟonal direcƟves as well as specific tacƟcs and acƟons.

3. Decision Making: Planning inherently involves decision-making. Managers must evaluate various
opƟons and scenarios, considering their potenƟal impacts on the organisaƟon. This requires a
balance of analyƟcal thinking, foresight, and someƟmes, intuiƟon. Decisions made during the
planning phase can significantly influence the organisaƟon's trajectory.

4. Adaptability and ConƟngency Planning: EffecƟve planning also involves preparing for
uncertainƟes and potenƟal changes in the business environment. Managers need to develop
conƟngency plans to address possible future challenges, ensuring organisaƟonal agility and
resilience.

· Organising: Structuring and CoordinaƟng

Organising is the managerial funcƟon that follows planning. It involves arranging resources and
acƟviƟes in a structured manner to achieve the organisaƟon's objecƟves.

1. Developing an OrganisaƟonal Structure: Organising entails designing the framework within which
the organisaƟon operates. This includes determining the division of labour, establishing departments
or teams, and defining roles and responsibiliƟes. The organisaƟonal structure can be hierarchical,
flat, matrix, or any other form that suits the organisaƟon's strategy and goals.

2. Resource AllocaƟon: A key aspect of organising is the effecƟve allocaƟon of resources, including
human resources, finances, technology, and physical assets. Managers must ensure that these
resources are deployed efficiently and are available where and when they are needed.

3. CoordinaƟng AcƟviƟes: Managers need to coordinate various acƟviƟes across the organisaƟon.
This involves synchronising tasks, and ensuring that different departments and teams work in
harmony towards common goals. EffecƟve coordinaƟon helps prevent duplicaƟon of effort and
ensures that efforts are directed in a unified direcƟon.

4. DelegaƟon of Authority: Organizing also involves delegaƟng authority and assigning tasks to team
members. DelegaƟon allows managers to distribute workloads effecƟvely and empowers

employees by giving them autonomy and responsibility in their roles. It also helps indeveloping
employees' skills and reducing managerial overload.

The funcƟons of planning and organising are criƟcal to the role of a manager. Planning sets the
direcƟon for the organisaƟon while organising establishes the structure and mechanisms to achieve
the planned objecƟves. These funcƟons require a combinaƟon of strategic thinking, decision-making
skills, and the ability to coordinate diverse resources and acƟviƟes. Mastering these funcƟons
enables managers to lead their teams effecƟvely and contribute significantly to organisaƟonal
success.

Building on the foundaƟonal managerial funcƟons of planning and organising, we delve into the
other two criƟcal funcƟons of a manager: leading, which involves direcƟng and influencing team
members, and controlling, which focuses on monitoring and evaluaƟng performance. These
funcƟons are integral in driving an organisaƟon towards its goals and ensuring that strategies and
plans are effecƟvely implemented.

· Leading: DirecƟng and Influencing Team Members

Leading is a dynamic and mulƟfaceted funcƟon that goes beyond mere management of tasks; it's
about inspiring, influencing, and guiding team members towards achieving organisaƟonal objecƟves.

1. DirecƟng and Guiding: A key aspect of leading is providing direcƟon to team members. This
involves clearly communicaƟng goals, expectaƟons, and the path to achieving these objecƟves.
Managers need to guide employees not just in tasks, but also in their professional development and
career growth.

2.MoƟvaƟon; One of the primary roles of a manager as a leader is to moƟvate team members. This
requires understanding the diverse moƟvators for each individual – which could range from financial
incenƟves to personal growth opportuniƟes, recogniƟon, or the intrinsic saƟsfacƟon of the work
itself. EffecƟve leaders inspire their teams to put forth their best effort and commitment.

3. Influencing and Persuasion: Leading oŌen involves influencing team members' aƫtudes, beliefs,
and behaviours to align with organisaƟonal goals. This can be achieved through effecƟve
communicaƟon, persuasion, and role-modeling desirable behaviours.
4. Building Team Cohesion: A significant part of leadership is fostering a sense of team unity and
collaboraƟon. Managers need to encourage teamwork, manage team dynamics, and resolve conflicts
when they arise, ensuring that the team operates efficiently and cohesively.

5. AdapƟve Leadership: Today's dynamic business environment requires leaders to be adaptable,

capable of adjusƟng their leadership style to the situaƟon, and responsive to the changing needs of
the team and the organisaƟon.

· Controlling: Monitoring and EvaluaƟng Performance

Controlling is the managerial funcƟon of monitoring the organisaƟon's progress towards its goals and
making adjustments as necessary to ensure opƟmal performance.

1. Establishing Performance Standards: The first step in controlling is seƫng clear performance
standards based on the organisaƟonal goals established during the planning phase. These standards
should be measurable and aƩainable, providing a clear benchmark against which actual performance
can be compared.

2. Monitoring Performance: This involves regularly reviewing and assessing the performance of
individuals, teams, and the organisaƟon as a whole. Managers need to collect and analyse data, track
progress against goals, and ensure that acƟviƟes are aligned with the strategic plan.

3. Feedback and CommunicaƟon: EffecƟve control relies on conƟnuous feedback and open
communicaƟon. Managers should provide construcƟve feedback to employees, highlighƟng both
areas of strength and areas needing improvement. This feedback is essenƟal for employees'
development and for making necessary adjustments in strategies or operaƟons.

4. CorrecƟve AcƟon: When discrepancies between actual and desired performance are idenƟfied,
managers must take correcƟve acƟon. This might involve re-evaluaƟng strategies, adjusƟng goals,
providing addiƟonal resources, or implemenƟng new processes.

5. Performance EvaluaƟon: This is a formal aspect of the controlling funcƟon where the performance
of employees is evaluated against the set standards. Performance evaluaƟons are crucial not only for
ensuring accountability but also for idenƟfying training needs, planning for career progression, and
recognising and rewarding good performance.

Leading and controlling are essenƟal funcƟons that complement the planning and organising roles of
a manager. While leading focuses on direcƟng and moƟvaƟng team members to achieve
organisaƟonal objecƟves, controlling ensures that these efforts are on track and aligned with the
organisaƟon's strategic plan. EffecƟve execuƟon of these funcƟons is key to successful management
and organisaƟonal excellence.

1.6 Skills of a Manager

The effecƟveness of a manager is significantly influenced by their skill set. Building on the
foundaƟonal concepts of management funcƟons, we idenƟfy two criƟcal categories of skills that are
essenƟal for managers: technical skills, which involve knowledge and proficiency in specific fields,
and human skills, which encompass interpersonal and communicaƟon abiliƟes.

· Technical Skills: Knowledge and Proficiency in Specific Fields

Technical skills are the knowledge and abiliƟes required to perform specialised tasks. These skills are
oŌen acquired through educaƟon, training, and hands-on experience in a specific field or industry.
1. Industry Knowledge: This includes an understanding of the specific industry in which the
organisaƟon operates. Familiarity with industry standards, trends, and best pracƟces is crucial. For
example, a manager in the technology sector needs to be knowledgeable about soŌware
development processes and emerging technologies.

2. Proficiency in Specific Tools and Techniques: Technical skills also involve proficiency in tools and
techniques specific to a parƟcular area of work. This could range from financial modelling tools for a
finance manager to project management soŌware for an operaƟons manager.

3. Problem-Solving AbiliƟes: EffecƟve managers use their technical skills to idenƟfy, analyse, and
solve problems specific to their area of experƟse. They apply their specialised knowledge to find
pracƟcal and innovaƟve soluƟons to challenges faced by their team or organisaƟon.

4. ApplicaƟon of Management Theories and Principles: Technical skills also encompass the
applicaƟon of management theories and principles in specific contexts. A manager needs to know
how to apply principles like planning, organising, leading, and controlling in their parƟcular area of
management.

· Human Skills: Interpersonal and CommunicaƟon Skills

Human skills, also known as soŌ skills, are criƟcal for effecƟve management. These skills enable a
manager to work effecƟvely with people and are essenƟal in all areas of management.

1. EffecƟve CommunicaƟon: This includes the ability to clearly and effecƟvely communicate ideas,
instrucƟons, feedback, and goals. Managers must be adept at both verbal and wriƩen
communicaƟon, ensuring that their message is understood by all team members.

2. Interpersonal Skills: A manager must be able to interact effecƟvely with employees, peers,
superiors, and external stakeholders. This involves listening, empathy, emoƟonal intelligence, and the
ability to inspire and moƟvate others.

3. Conflict ResoluƟon: Managers oŌen face conflicts within their teams or with external parƟes.
Human skills include the ability to mediate disputes, understand different perspecƟves, and
negoƟate soluƟons that are acceptable to all parƟes involved.

4. Team Building: A key aspect of human skills is the ability to build and maintain effecƟve teams.
This involves recognising the strengths and weaknesses of team members, fostering teamwork, and
creaƟng a collaboraƟve work environment.

5. Adaptability and Flexibility: The dynamic nature of business requires managers to be adaptable
and flexible. Human skills involve being open to change, able to handle uncertainty, and responsive
to new situaƟons and challenges.

The skills of a manager encompass a blend of technical and human skills. Technical skills are
necessary for understanding and execuƟng the specialised aspects of the manager's role, while
human skills are crucial for managing teams, communicaƟng effecƟvely, and building posiƟve
relaƟonships. The best managers are those who can combine these skill sets to lead their teams and
organisaƟons towards achieving their goals and objecƟves effecƟvely.

· Conceptual Skills: AnalyƟcal and Strategic Thinking

Conceptual skills are the ability to think criƟcally and analyƟcally about complex situaƟons, to see the
'big picture,' and to understand how various elements within an organisaƟon are interconnected.
These skills are crucial for high-level planning and decision-making.
1. AnalyƟcal Thinking: This involves breaking down complex problems into smaller, manageable
parts, idenƟfying the underlying issues, and examining them from different angles. AnalyƟcal
thinking helps managers to understand the root causes of problems, rather than just addressing the
symptoms. This skill is crucial for effecƟve problem-solving and decision-making.

2. Strategic Planning: Conceptual skills are essenƟal for developing long-term strategies that align
with the organisaƟon's mission and vision. Strategic planning requires a deep understanding of the
internal strengths and weaknesses of the organisaƟon, as well as external opportuniƟes and threats
(SWOT analysis). Managers use this understanding to formulate strategies that posiƟon the
organisaƟon for future success.

3. Visionary Leadership: Managers with strong conceptual skills are able to envision the future of the
organisaƟon and inspire others towards this vision. They understand the trends and changes in the
external environment and can anƟcipate how these could impact the

organisaƟon. This visionary aspect is crucial for leading an organisaƟon through change and
innovaƟon.

4. Systems Thinking: Conceptual skills involve an understanding of how different parts of the
organisaƟon are interconnected and how changes in one area can impact others. This systems
thinking approach is vital for ensuring that decisions made in one part of the organisaƟon support
the overall goals and objecƟves.

5. CreaƟvity and InnovaƟon: Managers with conceptual skills are oŌen creaƟve thinkers who can
come up with innovaƟve soluƟons to complex challenges. They are not afraid to think outside the
box and are willing to take calculated risks to drive the organisaƟon forward.

6. AdapƟng to Complexity: In today's dynamic business environment, managers face increasingly

complex situaƟons. Conceptual skills enable them to adapt to these complexiƟes, make sense of
ambiguous situaƟons, and devise effecƟve strategies to navigate through them.

Conceptual skills encompass analyƟcal and strategic thinking abiliƟes that are criƟcal for managers,
especially those in senior posiƟons. These skills enable managers to understand and interpret the
broader context of the business, make informed strategic decisions, and lead their organisaƟons
effecƟvely in a complex and rapidly changing environment. Coupled with technical and human skills,
conceptual skills complete the skill set necessary for effecƟve and successful management.

1.7 Roles of a Manager in an OrganizaƟon

The roles of a manager in an organisaƟon are diverse and mulƟfaceted, encompassing various
responsibiliƟes and funcƟons that are essenƟal for the smooth operaƟon and success of the
organisaƟon. Drawing on the concepts discussed previously, we can categorise these roles into two
broad areas: interpersonal roles, including leader, liaison, and figurehead, and informaƟonal roles,
encompassing monitor, disseminator, and spokesperson.

· Interpersonal Roles: Leader, Liaison, Figurehead

1. Leader: As leaders, managers are responsible for guiding and moƟvaƟng employees, seƫng
performance expectaƟons, and fostering a posiƟve work environment. This role aligns closely with
the human skills of a manager, requiring effecƟve communicaƟon, empathy, and the ability to inspire
and moƟvate the team. Leaders also play a crucial role in developing the team's skills and
capabiliƟes, ensuring that each member contributes effecƟvely to the organisaƟon's goals.
2. Liaison: In the liaison role, managers act as the connecƟng point between different parts of the
organisaƟon and between the organisaƟon and external parƟes. This involves networking, building
and maintaining relaƟonships, and ensuring effecƟve communicaƟon across different departments
and with clients, suppliers, and other stakeholders. The ability to effecƟvely liaise ensures that the
manager has access to important informaƟon and resources necessary for decision-making.

3. Figurehead: As figureheads, managers represent their organisaƟon in a formal, symbolic capacity.

This role involves ceremonial duƟes like aƩending community events, industry gatherings, or
company funcƟons. The figurehead role is crucial for public relaƟons and establishing a presence in
the broader community and industry.

· InformaƟonal Roles: Monitor, Disseminator, Spokesperson

1. Monitor: In this role, managers constantly gather informaƟon relevant to the organisaƟon and its
environment. This includes monitoring internal performance metrics, industry trends, market
changes, and other external factors that could impact the organisaƟon. The ability to effecƟvely
monitor and analyse informaƟon is linked to the manager's conceptual skills, parƟcularly in terms of
analyƟcal and strategic thinking.

2. Disseminator: Managers are responsible for disseminaƟng important informaƟon within the
organisaƟon. This involves communicaƟng goals, policies, and procedures to employees, as well as
sharing insights and intelligence that can influence decision-making and strategy. EffecƟve
disseminaƟon ensures that all team members are informed and aligned with the organisaƟon's
objecƟves and strategies.

3. Spokesperson: In this role, managers represent and speak on behalf of their organisaƟon to
external audiences. This could include speaking to the media, presenƟng at industry conferences, or
engaging with the wider community. As spokespersons, managers need to effecƟvely communicate
the organisaƟon's values, goals, and accomplishments, enhancing its reputaƟon and public image.

The roles of a manager are dynamic and encompass a wide range of acƟviƟes, from leading and
moƟvaƟng teams to liaising with various stakeholders and managing the flow of informaƟon within
and outside the organisaƟon. The effecƟve execuƟon of these roles requires a blend of technical,
human, and conceptual skills. By successfully fulfilling these roles, managers play a pivotal role in
driving the organisaƟon's success and ensuring its long-term sustainability and growth.

The decisional roles of a manager are a criƟcal aspect of their funcƟon within an organisaƟon,
represenƟng the culminaƟon of their skills and roles in directly shaping the organisaƟon's path.
These roles, encompassing the entrepreneur, disturbance handler, resource allocator, and negoƟator,
demand a high degree of insight, judgment, and strategic thinking.

· Decisional Roles: Entrepreneur, Disturbance Handler, Resource Allocator, NegoƟator

1. Entrepreneur: In this role, managers act as iniƟators and designers of much-needed change and
innovaƟon within the organisaƟon. This involves idenƟfying new opportuniƟes, developing new
ideas, and implemenƟng changes to improve organisaƟonal performance and compeƟƟveness. The
entrepreneurial role requires a manager to leverage their conceptual skills, parƟcularly in terms of
strategic thinking and innovaƟon. They must be proacƟve, foreseeing market trends and
organisaƟonal needs, and responding with creaƟve soluƟons that keep the organisaƟon moving
forward.
2. Disturbance Handler: This role involves dealing with unexpected events and operaƟonal crises
that can disrupt the organisaƟon's acƟviƟes. As a disturbance handler, the manager is responsible for
quickly idenƟfying the problem, assessing the situaƟon, and taking correcƟve acƟon to resolve
conflicts or crises. This role requires a blend of human and conceptual skills, where the manager
must remain calm under pressure, think criƟcally, and make decisions that minimise the impact of
these disturbances on the organisaƟon.

3. Resource Allocator: In this role, managers are responsible for allocaƟng and managing resources
effecƟvely to achieve the organisaƟon's objecƟves. This includes deciding how to distribute financial,
human, and physical resources across various departments and projects. EffecƟve resource allocaƟon
requires a deep understanding of the organisaƟon's goals, strategic planning, and analyƟcal skills to
ensure resources are used efficiently and effecƟvely. Managers must balance compeƟng demands
and prioriƟes, ensuring that resources are allocated in a way that maximises organisaƟonal
performance.

4. NegoƟator: Managers oŌen find themselves in situaƟons where they need to negoƟate on behalf
of the organisaƟon. This could involve negoƟaƟng contracts with suppliers, bargaining with labour
unions, or resolving conflicts among team members. EffecƟve negoƟaƟon requires excellent
communicaƟon and interpersonal skills, along with the ability to understand and balance different
interests. Managers need to be adept at persuading and influencing others, finding mutually
beneficial soluƟons, and maintaining posiƟve relaƟonships even in challenging situaƟons.

The decisional roles of a manager encapsulate the essence of their impact on an organisaƟon. These
roles demand a high level of strategic thinking, problem-solving, resource management, and
interpersonal effecƟveness. By effecƟvely fulfilling these roles, managers can drive organisaƟonal
growth, navigate through challenges, opƟmise resource use, and maintain harmonious relaƟonships
both within and outside the organisaƟon. These roles, therefore, highlight the mulƟfaceted nature of
management and the diverse set of skills required to succeed in a managerial posiƟon.

· Knowledge Check 2
State True or False

1. One of Fayol's principles of management is the 'Unity of Command,' which states that each
employee should receive orders from more than one superior. (False)

2. A manager acƟng as a 'Disseminator' in the informaƟonal role involves communicaƟng goals and
policies within the organisaƟon. (True)

3. Technical skills in management refer primarily to a manager's ability to interact effecƟvely with
others. (False)

4. In the decisional role of 'Resource Allocator,' a manager is responsible for deciding how to
distribute resources like finances and personnel. (True)

· Outcomes-Based AcƟvity 2

Consider a manager you know or have worked with and analyse how they effecƟvely demonstrate
one of Fayol's principles of management in their daily acƟviƟes, such as 'Unity of Command' or
'Division of Work'.
1.8 Summary

· Management is the process of organising and coordinaƟng acƟviƟes to achieve a set of goals,
involving planning, decision-making, and overseeing operaƟons.

· It is a dynamic and adapƟve process that is goal-oriented, universal in applicaƟon, and systemaƟc,
focusing on effecƟveness and efficiency in various organisaƟonal contexts.

· The evoluƟon began with Classical Management Theories focusing on efficiency and structure, then
moved to the Human RelaƟons Movement emphasising social and psychological aspects of work.

· Contemporary Management Theories have introduced concepts like systems theory, conƟngency
theory, and approaches focusing on conƟnuous improvement and adaptability to change.

· Planning involves seƫng goals and developing strategies, requiring decision-making and
adaptability to future uncertainƟes and changes in the business environment.

· Organising entails structuring resources and acƟviƟes, coordinaƟng efforts, and delegaƟng
authority, ensuring opƟmal resource uƟlisaƟon and task execuƟon.

· Core principles include division of work, authority and responsibility, discipline, unity of command,
and equity, which guide managerial decisions and acƟons.

· These principles find applicaƟon across different organisaƟonal seƫngs, from business corporaƟons
to non-profits, adapƟng to specific contexts and environments.

· Planning sets the organisaƟon's direcƟon, while organising establishes the structure to achieve
these objecƟves, requiring strategic thinking and coordinaƟon.

· Leading involves moƟvaƟng and guiding team members while controlling ensures alignment with
organisaƟonal goals through performance monitoring and evaluaƟon.

· Technical skills involve specific industry knowledge and proficiency in specialised tools and
techniques, essenƟal for problem-solving and decision-making.

· Human skills encompass effecƟve communicaƟon, interpersonal abiliƟes, conflict resoluƟon, and
team-building, crucial for managing teams and external relaƟons.

· Interpersonal roles include being a leader, liaison, and figurehead, necessitaƟng effecƟve
communicaƟon and representaƟon skills.

· InformaƟonal roles encompass monitoring, disseminaƟng informaƟon, and acƟng as a

spokesperson, requiring keen awareness and effecƟve communicaƟon of internal and external
informaƟon.

1.9 Keywords

· ScienƟfic Management: A theory developed in the early 20th century by Frederick Taylor,

focusing on improving work efficiency through the scienƟfic study of tasks. It emphasises Ɵme
management, labour specialisaƟon, and systemaƟc training.

· Human RelaƟons Movement: Emerging in the 1930s, this movement shiŌed the focus of
management from strict work procedures and organisaƟonal structure to the social and emoƟonal
needs of employees, highlighƟng the impact of leadership styles, moƟvaƟon, and group dynamics on
producƟvity.
· ConƟngency Theory: A management concept suggesƟng that there is no one-size-fits-all approach.
It posits that organisaƟonal strategies and structures should vary according to internal and external
environmental factors, emphasising adaptability and situaƟonal analysis.

· Resource AllocaƟon: This refers to the managerial process of distribuƟng resources (human,
financial, and material) efficiently across an organisaƟon's various departments and projects. It's
criƟcal to ensure that resources are used effecƟvely to achieve organisaƟonal goals.

· Interpersonal Skills: These are the skills required by managers for effecƟve interacƟon with
employees, peers, and other stakeholders. They include communicaƟon, empathy, conflict
resoluƟon, and team-building abiliƟes, vital for leadership, negoƟaƟon, and fostering a posiƟve work
environment.