Maryland International College

Course Title:
Management Theory and Practice
BY Dr. Amanuel A.

1
 Course Overview

• Chapter One: Overview of Management

• Chapter Two: Evolution of Management
• Chapter Three: Planning
• Chapter Four: Organizing
• Chapter Five: Staffing
• Chapter Six: Directing
• Chapter Seven: Controlling

Management Theories 2
Chapter 1: General Overview of
Management

• Definition of Management
• Nature and Characteristics of Management
• Significance of Management
• Levels of Management
• Managerial Roles
• Managerial Skills
• Universality of Management

Management Theories 3
Overview of management

• The term management can name both an activity and

persons in charge of the activity.
• As activity, the term derives from the
Italian maneggiare, meaning to handle or control a
horse, which is itself rooted in the Latin manus, or
hand.
• In the late 1500s the word was applied to the
governing body of a theater and from there to other
business activities, including those involved with
industrial manufacture.

Management Theories 4
Overview of management

• Humans have always collaborated to reach

shared goals.
• Distributed tasks for common ends require
coordination, planning, control, and organization
• all of which are as subject to ethical
assessment along with the ends to which they
are subordinate.
• Management did not take on its contemporary connotations
until the technological, economic, political, and social changes
of the Industrial Revolution (c. 1750–1850).
Management Theories 5
 Overview of management
• The modern understanding of management in
terms of leading an organization toward a goal
through the deployment and manipulation of
resources
•(material, human, financial, and
intellectual) was further shaped by
• classical and 19th-century economic theory
• the development of technical production elements such as
standardization, specialization, and work planning.
• The emergence of modern technologies and the market
economy challenged managers to develop a body of
knowledge on how best to administer and utilize human
and technological resources
Management Theories 6
•What is management?
Write your own definition
and share to your
colleague

Management Theories 7
Definitions

1.Management is the process of coordinating all

resources through the five major functions of
planning, organizing, staffing, directing /leading
and controlling to achieve organizational
goals/desired objectives. - Henry L. Sisk
2. Management is the art of getting things done
through and with the people in formally organized
groups - Koontz H.
 Definitions Cont’d
3. Management is the process of getting
things done, effectively and efficiently,
through and with other people – Mary Parker
Follett
What is the d/ce b/n efficiency and effectiveness ?
 Efficiency
 Means doing thing right; refers to the
relationship between inputs and outputs;
seeks to minimize resource costs
 Effectiveness
 Means doing the right things; goal
attainment
•Why do you think management
has different definitions?

Management Theories 10
 Manager
Manager – The person responsible
for supervising the use of an
organization’s resources to meet its
goals
A manager is a professional who manages organizational
resources so as to make the achievement of predetermined
goals and objectives of the company as effective and efficient
as possible. They make plans, and policies, manage people,
and implement the plans.
Note! Everybody is the manager of
his/her time, energy and talents.
 Manager
• Managers take a leadership role in the
organization, they create, manage, and lead
teams of employees.
• They play a fundamental role in organizational
success.
• The effective management and best utilization
of organizational resources (people, money,
information, and physical) largely depend upon
the knowledge, skills, and abilities of the
manager.
• A good manager brings uniformity in action,
builds team spirit, and cooperation, and creates
a healthy working environment.
• He supports and encourages employees more
Management Theories 12
Organization
• Organization is a systematic arrangement of
people brought together to accomplish some
specific purpose
• An organization is a body built for a collection of
individuals who join together to achieve some
common goals and objectives bounded by legal
entities.
• Organizations are often referred to as a company,
institution, association, government body, etc.
• They follow certain legal procedures like business
registration, tax identification, and maintaining
corporate book records.
Organization

Common Characteristics of Organizations

 Have a distinct purpose (goal)
 Composed of people
 Have a deliberate structure
Coordination and Communication
Specialization
Standardization
Flexibility and Adaptability

Management Theories 14
Characteristics of management

1. Management is goal-oriented:
 Management is not an end in itself, it is a means
to achieve certain goals.
The basic goal of management is to ensure
efficiency and economy in the utilization of human,
physical and financial resources.
2. Management is universal:
 Management is an essential element of every
organized activity irrespective of the size or type of
activity
Characteristics Cont’d

3. Management is an integrative Force – unifies

human & other resources
 As a unifying force, management creates a whole
that is more than the sum of individual parts
 It integrates human and other resources
4. Social Process
Management is done by people, through people
and for people.
It is a social process because it is concerned with
interpersonal relations.
Characteristics Cont’d

5. Multidisciplinary
Management has to deal with human behavior
under dynamic conditions.
Therefore, it depends upon wide knowledge
derived from several disciplines like engineering,
sociology, psychology, economics etc.
6. Management is intangible
 Management is an unseen or invisible force
It cannot be seen but its presence can be felt
everywhere in the form of results.
Characteristics Cont’d

7. Management is a continuous process

Management is a dynamic and an on-going
process.
The cycle of management continues to operate so
long as there is organized action for the
achievement of group goals.

Why management is dynamic?

Management process/Functions
There are five functions of
management/Managerial Functions
1. Planning
2. Organizing
3. Staffing
4. Directing
5. Controlling
The functions of management provide a useful
framework for organizing management knowledge.
Planning

1. Planning – Process of identifying and selecting

appropriate organizational goals and courses of
action

 Planning is an exercise of forethought

 It is concerned with what? Who? How? When?
Where? How much?
 It is deciding in the present about the future
objectives and the course of actions for their
achievement.

Management Theories 20
Planning Cont’d

Planning involves:
Determination of short range and long range
objectives
Development of strategies and courses of action
to be hold for achievement of the objective
Formulation of policies, procedures and rules for
the implementation of strategies and plan
Organizing
 It involves:
 determining what tasks to be done
 who is to do them
 how the tasks are to be grouped
 who reports to whom, and
 where decisions are to be made
Staffing

 refers to filling and keeping filled the positions in

the organization structure
 concerned with locating prospective employees
to fill the jobs created by the organizing process
Staffing Cont’d
Staffing involves:
 Determination of number and kind of
employees needed
 Recruitment of employees (creating potential
employees from whom selection is to be
made)
 Selection of the most efficient employee
suitable for job
 Placement and induction
 Training and development, etc.
Directing/Leading
It is aimed at getting the members of an
organization move in the direction that will achieve
its objectives.
 Leading/leadership is the heart and soul of
management.
 It involves influencing others to engage in the
work behavior necessary to reach organizational
goals
Controlling

The process of:

monitoring performance,
comparing it with goals, and
correcting any significant deviations
 Managers…..

• The people responsible for supervising the use of

an organization’s resources to meet its goals

1-27
 WHAT DO MANAGERS
DO?
Three categorization schemes:

Management Functions
Management Roles
Management Skills

Management Theories 28
MANAGEMENT FUNCTIONS….

Management Theories 29
Management functions …?
IS MANAGEMENT UNIVERSAL ?
Why or why not?

Management Theories 31
UNIVERSALITY OF
MANAGEMENT

Management Theories 32
Management is science or art?
Management knowledge exhibits characteristics
of both art and science, the two not mutually
exclusive but supplementary.
 mgt as a science contains a systematic body of
knowledge in the form of general principles which
enjoy universal applicability.
Management science or art Cont’d
 The art of management is personal creative
power and skill in performance.
 If science teaches one to know, art teaches one
to do
 Managers have to know and do things efficiently
and effectively to be successful, so there is
unique scientific and artistic combination in
practice.
Universality of Management
 Management functions and principles have universal application in :

 All levels of management with different emphasis

 All type of organization be it business, non-business,
governmental, private. It is useful from individual to
institutional efforts
 All organization areas - production, marketing, HR,
etc rely on management.
 All organizations varying in size - from small to large
utilize management
Managerial Levels
 Refers to a line of
demarcation between
various managerial
positions in an
organization
 Determines:
 a chain of command
 the amount of authority
and
 status enjoyed by any
managerial position(s)
Management Theories 36
Levels of management Cont’d

 The levels of management can be

classified in three broad categories:
1. Top level/administrative level/ strategic level
2. Middle Level/Tactical/Execution level
3. Lower level/supervisory/operative/first line
manager
 Mangers at all these levels perform
different functions
Top level management

 Top management is the ultimate source of

authority and it manages goals and policies for
an organization
 It devotes more time on planning and
coordinating functions
 consider how the organization interacts with its
environment
 Ultimately responsible for the success or failure
of an organization
Middle level management

 They execute the plans of the organization in

accordance with the policies and directives of
top level management
 They make plans for sub-units of the
organization
 They interpret and explain policies from top
level management to lower levels
 They are also responsible for inspiring lower
level managers towards better performance
Lower Level Management
 Refers to those executives whose work has to be
largely with personal oversight and direction of
operative employees
 They are concerned with direction and
controlling functions of management
 They are directly responsible for the production
of goods and services
Types of Managers based on scope of
responsibility
Two types:
1.Functional Managers
managers who are responsible for a department
that performs a single functional task and has
employees with similar training and skills
2. General Managers
 managers who are responsible for several
departments that perform different functions.
 They are responsible for the entire operations of
the organization without being specific
 Management Roles
•Accepting a managerial role goes beyond
changing your job title.
•You must also embrace the functions of
management, including leadership, decision-
making, and motivating employees to pursue
organizational goals.
• Roles are specific actions or behaviors expected
of a manager.
• Mintzberg identified 10 roles grouped around
three major categories:
1) interpersonal relationships,
2) the transfer of information,
3) decision making
 MANAGERIAL ROLES

•Interpersonal Roles are roles that involve

interacting with people (subordinates
and persons outside the organisation)
and other duties that are ceremonial
and symbolic- figurehead, leader, liaison
•Managers transmit messages up and
down the chain of command, offering
worker insight to those at higher levels
and corporate guidance to those at lower
levels
Management Theories 43
MANAGERIAL ROLES

•Informational: Roles that

involve receiving, collecting
and disseminating
information- monitor,
disseminator, spokesperson

Management Theories 44
MANAGERIAL ROLES

•Decisional: Roles that involve

making choices- entrepreneur,
disturbance handler, resource
allocator, negotiator

Management Theories 45
 INTERPERSONAL
Role Description Identifiable
Activity
Figurehea Manager serves as an official Greeting visitors;
d representative of the signing legal
organization or unit documents

Leader Manager guides and Staffing, training

motivates staff and acts as a
positive influence in the
workplace
Liaison Manager interacts with peers Acknowledging
and with people outside the mail/email; serving
organization to gain on boards;
information performing activities
that involve
outsiders
 INFORMATIONAL
Role Description Identifiable
Activity
Monitor Manager receives and Reading
collects information magazines and
reports;
maintaining
personal contacts
Dissemin Manager distributes Holding
ator information within the meetings; making
organization phone calls to
relay information;
email/memos
Spokespe Manager distributes Holding board
rson information outside the meetings; giving
organization information to
the media
 DECISIONAL
Role Description Identifiable Activity
Entrepre Manager initiates Organizing sessions
neur change to develop new
programs;
supervises design of
projects
Disturba Manager decides how Steps in when an
nce conflicts between employee suddenly
Handler subordinates should be leaves or an
resolved important customer
is lost
Resource Manager decides how Scheduling;
Allocator the organization will requesting
use its resources authorization;
budgeting
Negotiat Manager decides to Participating in
or negotiate major union contract
contracts with other negotiations or in
 Managerial Skills
• Managerial skills are the knowledge and ability of
the individuals in a managerial position to fulfil
some specific management activities or tasks.
• This knowledge and ability can be learned and
practiced.
• However, they also can be acquired through
practical implementation of required activities and
tasks.
• Therefore, you can develop each skill
through learning and practical experience as a
manager.
Management Theories 49
 Managerial Skills
• The skills of a manager is to maintain high efficiency in
the way how his or her employees complete their
everyday working tasks.
• Managers will need skills that will help them
to manage people and technology to ensure an
effective and efficient realization of their working
duties.
• There are three main forms of Managerial Skills (Skills of
Management)
1.Conceptual Skills
2.Human Skills
3.Technical skills
Management Theories 50
 Conceptual skills

• It is a mental ability to think, ponder,

and solve problems (complex
organizational problems)
• The ability to analyze and diagnose a
situation and distinguish between cause
and effect.
• The ability to think and conceptualize
about abstract and complex situations
concerning the organization
1-51
Conceptual skills

•Conceptual skills are vital for top

managers, less critical for mid-level
managers and not required for first-level
managers.
•As we go from the bottom of the
managerial hierarchy to the top, the
importance of these skills will rise.

Management Theories 52
 Human skills
• This is the ability to interact with
people and prevail upon them
• facilitate a manager’s knowledge and ability
to work with people
• The ability to understand, alter, lead,
and control the behavior of other
individuals and groups.
• Without people, the existence of
management and managers becomes
redundant. Management Theories 53
 Human skills

•These skills enable managers to become

leaders and motivate employees for better
accomplishments.
•Additionally, they help them to make
more effective use of human potential in
the company.
•Simply said, they are essential skills for all
hierarchical levels in the company.

Management Theories 54
Technical skills
• Job-specific skills required to
perform a particular type of
work or occupation at a high
level.
• skills give the manager knowledge and
ability to use different techniques to
achieve what they want to achieve.
• E.g A manager of a research company
needs to have technical knowledge in the
field of research such as statistical tools –
SPSS, STATA etc…. Management Theories 55
Technical skills

•Technical skills are most important for

first-level managers.
•When it comes to the top managers,
these skills are not something with a high
significance level.
•Therefore, as we go through a hierarchy
from the bottom to higher levels,
technical skills lose their importance.
Management Theories 56
Managerial Skills vs levels of
management
 Environment of Management
Environment of Management: it
explains the forces (both inside
and outside of the company that
affects (positively or negatively)
the overall function of the
company.
There are two types of
environment which are divided as
internal and external
environment. The internal
environment is controllable but
the external one is uncontrollable.
Management Theories 58
 Environment of Management
External
Environment:
Internal
Economy of the Environment:
country: inflation, cost Management of the
of living etc… company
Politics: the countries Employees skill
overall politics Machineries
Social and Cultural Financial capital
forces: the countries
social and cultural
issues
Technology: the
overall technological
forces related to the
company’s products 59
END

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