TOPIC ONE: INTRODUCTION TO MANAGEMENT

1.1 Learning Objectives

By the end of this course, the learners should be able to:

a) Define the term Management

b) Describe the management process
c) Discuss the nature and the characteristics of management
d) Explain the concept of profession in relation to management
e) Illustrate the multi disciplinary nature of management

What is Management?
It is very difficult to give a precise definition of the term Management. Different scholars from
different disciplines view and interpret management from their own angles. The economists
consider management as a resource like land, labour, capital and organization. The bureaucrats look upon
it as a system of authority to achieve business goals. The sociologists consider managers as a part of the
class elite in the society. Several writers and scholars in the field of management have given
different definitions of management. Here we just look at a few of them.

• According to Harold Koontz (1909-1984)- “Management is the art of getting things done
through others and with formally organized groups”

• According to Frederick Winslow Taylor (1856-1915)-“Management is the art of knowing

what you want to do and then seeing that they do it in the best and cheapest way”

• According to George R Terry (1877 - 1955), ''Management Is a distinct process consisting of

planning, organizing, actuating and controlling; utilizing in each both science and art, and followed in
order to accomplish pre-determined objectives."

• According to Peterson and Plowman –“Management is a multipurpose organ that manage

a business and manages Managers and manages Workers and work”

• According to Peter Ferdinand Drucker (1909 – 2005)- "Management may be defined as

the process by means of which the purpose and objectives of a particular human group are
determined, clarified and effected”

• According to one popular definition by Mary Parker Follett (1868-1933), Management, she
says, is the "art of getting things done through people."

The recent scholars have borrowed a lot from previous scholars and have defined
management in the following ways:
• The planning, organizing, leading, and controlling of human and other resources to achieve
organizational goals effectively and efficiently

• The process of getting things done, effectively and efficiently, through and with other
people

• Management is the creation and maintenance of an internal environment in an enterprise

where individuals, working in groups, can perform efficiently and effectively towards the
attainment of group goals

Three important concepts need to be clearly understood: Efficiency, effectiveness and

organization

Efficiency means doing things right; it refers to the relationship between inputs and outputs;
seeks to minimize the costs of resources.

Effectiveness means doing the right things; overall goal attainment.

Organization- This is the context of management. Management takes place within

organizations. An organization is a deliberate arrangement of people who work together to
accomplish some specific purpose (goals) which individuals independently could not
accomplish.

The characteristics of organizations are:

a) Objectives/Goals
b) People
c) Structure
d) Management

Organizations must strive to utilize scarce resources sparingly to achieve the goals that have
been set. In achieving this managers engage the services of the employees (people) within the
organization.

The Management Process: An Overview

• The management process involves Planning, organizing, leading/Directing and
controlling

Planning-This entails defining goals, establishing the strategy and laying down ways to
coordinate activities
 Organizing- Involves determining what tasks are to be done, who is to do them, how the
tasks are to be grouped, who reports to who and where decisions are to be made.

Leading/Directing- Involves motivating employees, guiding the activities of others,

selecting the most effective communication channel and resolving conflict

Controlling-This is the process of monitoring performance, comparing it with goals and

correcting any significant deviations

Characteristics of Management
Every discipline has its defining characteristics. Management is no exception to this.
1. Management is a goal oriented activity
There is always a definite objective of management and managers help in achieving that
objective successfully.

2. Management is concerned with arranging group activity in a coordinated manner. In

a group activity, the manager alone cannot achieve the objectives. He has to take the
help of others. He has to see that different employees perform their activities in such a
manner that there is no conflict, that work is performed in an orderly manner and
completed at the right time. Besides, different activities should support each other. This
is called co-ordination.

3. Managers are involved in decision making that is, choosing between alternative
courses of action at all stages of management.
4. Management is an economic-activity. It aims at securing maximum results with
minimum of effort and cost. Managers use various methods to reduce wastes and
increase the efficiency of work.

5. Management involves creativity. Managers have to get work done in different types
of situations with the help of people having different types of skills. Managers have,
therefore, to think of different ways of getting things done. In this regard, managers
must always bear in mind that creativity, ingenuity and imagination are widespread
among people

6. Management is universal- Fundamental principles of management are applicable in

all areas of organized effort. These principles can be applied in all types of organizations
(large and small, for profit and not for profit, public and private, etc)
 7. Management is a social process –It is done by people, through people and for people.
It is concerned with interpersonal relations. Human factor is the most important
element in management. How people interact in organizations accounts for the results
to a great extent.

8. Management is multidisciplinary- Management as a discipline has evolved over time.

It borrows widely from other disciplines like economics, sociology, psychology,
anthropology etc.

9. Management is a continuous process as depicted by the management process

The Nature of Management

Universality of management
All managers perform the same functions although lower level managers emphasize directing
while upper level managers spend more of their time planning, organizing, and controlling. The
differences are in terms of degree of emphasis, not function

The manager’s job is the same in both profit and not for profit organizations. The most
important difference is in terms of how performance is measured

Management as a Profession
In the company form of organization, it is not possible for all the shareholders to take part in
the management of the company. The management of company is entrusted to the elected
representatives of the shareholders called the directors. These directors appoint managers to
manage the day-do-day activities. Thus, there is a separation between ownership and
management.
Managers of a company should, therefore, possess expert knowledge and skill in management
which can be acquired through education and training. Managers of other types of
organizations are also expected to possess expert knowledge. They are expected to observe
some principles in the conduct of business affairs.
They are also expected to take care of the responsibilities of the company towards the society.
They should not do anything which is unethical and illegal, e.g. avoiding payment of taxes,
earning profits through improper means, etc. Any occupation is known as a profession if it
fulfills the certain requirements:
Characteristics of a profession

i) There is a systematized body of knowledge.

ii) Specialized knowledge is acquired through education and training.
iii) Service is considered to be more important than earning profits.
iv) Those engaged in the occupation observe certain standards in the conduct of affairs. (These
standards are embodied in ‘Code of Conduct’, which differ from profession to profession).
v) There should be an association of the persons in the profession to regulate their occupational
behavior (service motive)
vi) Restricted entry
vii) Practicing licenses
Management is the occupation of managers and it fulfils some of the requirements of
profession e.g. there is a systematized body of knowledge; there are institutes for the
education and training of managers; there are associations of managers which have developed
‘Codes of Conduct’ for managers. However, management has not yet developed fully as a
profession like the professions of law, medicine, etc. This is because there is no uniformity
regarding the formal qualifications of managers. Moreover, the ‘Code of Conduct’ is not legally
binding on managers.

Management as a Science
Characteristics of a Science

(i) Basic facts or general principles capable of universal application

(ii) Systematic body of knowledge

(iii) Developed through scientific enquiry or experiments

(iv) Establish cause and effect relationships between various factors.

(v) Their Validity can be verified and they serve as reliable guide for predicting future events.

Management qualifies as a science because it exhibits the listed characteristics. However,

management is not an exact science. This is because it deals with people and it is very difficult to
accurately predict their behaviours. Management principles, though universal, are contingent to the
situation. Management is therefore a Social Science
Management as an Art
Art implies the application of knowledge and skills to bring about the desired results

Characteristics of an Art

(i) Practical knowledge- A manager is judged not just by his technical knowledge but by his
efficiency in applying this knowledge. Once what is known has been applied, the results can then be
measured

(ii) Personal skill- Every manager has his individual approach and style in solving managerial
problems. The success of a manager depends on his personality in addition to his technical
knowledge. Personal judgment thus becomes an important aspect of a manager’s job

(iii) Result oriented approach- Every manager applies certain knowledge and skills to achieve the
desired results.

(iv) Creativity- Managers are expected to be creative in solving problems and dealing with different
situations in the organization’s internal and external environment

(v) Improvement through continuous practice-Managers gains experience through regular practice
and becomes more effective with practice

Management therefore is both an art and a science. It combines both theory and practice

Management as a Body of Individuals

As managers perform their functions jointly in a group, they are often collectively known as
‘Management’. The success of a business depends upon the efficiency of not one but more than one
manager. They have to work as a team so that the objectives of the business as a whole may be fully
achieved. Hence, it is proper that the word ‘management’ should not be related to any single
manager but to the team of managers. To run any business successfully, the group of managers must
work with a team spirit.
Also there are certain levels of management divided on the basis of the nature of duties and
responsibilities. The managers at different levels should work in co-operation to make sure that their
joint efforts lead to the best possible result.

Management as a Discipline
Ordinarily the word ‘discipline’ is understood to mean orderly behaviour in day to day life. This
word also means an independent branch of knowledge. For instance, history, geography, economics,
physics, chemistry, etc. are regarded as disciplines. Management is also recognized as a discipline in
the same sense. Like other disciplines, it also consists of certain principles, theories and methods.
The body of knowledge in management has been developed on the basis of thinking of experts and
practitioners in the field of management. For instance, Henry Fayol and F.W. Taylor have suggested
various principles of management to make management more systematic and scientific in practice.
Taylor’s principles of Scientific Management suggest that instead of traditional methods, managers
should adopt scientific methods for the solution of business problems. Henry Fayol has given
fourteen principles of management. Management, as a discipline, will be more scientific as
knowledge of management expands and there is systematic thinking on management.

Review Questions
1. What is management?
2. Describe the management process
3. Management is a profession. Discuss this statement in reference to the Kenyan situation
4. Is management a science or an art? Discuss this statement in relation to the theory and
practice of management
5. What are the defining characteristics of management?