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Chapter 1 - Fundamental of Management

This document provides an overview of management theory and concepts. It defines management and discusses its significance. The key managerial functions are planning, organizing, staffing, directing and controlling. Management involves three levels - first-line, middle, and top. Managers require technical, human, and conceptual skills. Managers fulfill roles such as figurehead, leader, liaison, and monitor. While management principles can apply universally, some argue culture influences management approaches.

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524 views

Chapter 1 - Fundamental of Management

This document provides an overview of management theory and concepts. It defines management and discusses its significance. The key managerial functions are planning, organizing, staffing, directing and controlling. Management involves three levels - first-line, middle, and top. Managers require technical, human, and conceptual skills. Managers fulfill roles such as figurehead, leader, liaison, and monitor. While management principles can apply universally, some argue culture influences management approaches.

Uploaded by

Kalu B
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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Management Theory and Practice

MBA 5011

Alebachew Asfaw (PhD)


[email protected]
092 435 9967

1
CHAPTER ONE
Fundamentals of Management
 Definition of Management
 Significance of Management
 Managerial Functions an Overview
 Levels of Management and Types of Managers
 Managerial Roles and Skills
 Universality of Management
 Is Management an art, Science, or profession?
Management defined
 Management is the attainment of organizational goals
in an effective and efficient manner through planning,
organizing, staffing, directing and controlling
organizational resources.
 Organizational resources include men(human beings),
money, machines and materials.
 Louis E Boone & David L Kurtz- The use of people and
other resources to accomplish objectives.
 Mary Parker Follet- the act of getting things done through
people.
 Frederick Taylor defines Management as the art of
knowing what you want to do in the best and cheapest
way.
Significance of Management
 Achievement of group  Effective utilization of
goals resources
 Minimization of cost  Development of
 Change and growth resources
 Effective and smooth  Sound organization
running of business structure
 Higher profit  Useful for developing
 Provide innovation countries
 Social benefits  Integration various
interest groups
 Stability in the society
Managerial Functions (Cont’d)
 Gulick first used the acronym ‘POSDCORB’ and
UR wick (1987) to explain the seven process of
administration/ management planning,
organizing, staffing, directing, coordinating,
reporting and budgeting.
 These processes can explain the total working or
management conditions of an institution
Nature of management
 Management is not just an art – it is also a science.
 Managers are required to do more than one function.
 Managers also perform non-managerial roles.
 Managerial functions are done in all organizations.
 Managerial functions are executed at all levels.
 Management functions have been defined using
different types and different number of words.
 Aim of all managers is to create a value.
 Managing is concerned with efficiency, effectiveness and
productivity.
Types of Managers
 First-line managers Top managers
 Responsible for day-to-day  Responsible for the
operations. Supervise performance of all
people performing departments and have cross-
activities required to make departmental responsibility.
the good or service.  Establish organizational goals
 Middle managers and monitor middle
 Supervise first-line managers.
managers. Are responsible  Form top management team
to find the best way to use along with the CEO and
departmental resources to COO.
achieve goals.
Levels of Management

Figure 1.3
Relative Amount of Time That Managers Spend on the
Four Managerial Functions

Figure 1.4
Managerial Skills

CONCEPTUAL

HUMAN

TECHNI
CAL
Managerial Skills
Technical Skills
 A persons’ knowledge and ability to make effective use of any
process or technique constitutes his technical skills.
(Engineer, accountant, data entry operator, lawyer, doctor
etc.)
Human Skills
 An individuals’ ability to cooperate with other members of
the organization and work effectively in teams. (Interpersonal
relationships, solving people’s problem and acceptance of
other employees.)
Conceptual Skills
 Ability of an individual to analyze complex situations and to
rationally process and interpret available information. (Idea
generation and analytical process of information.)
Manager’s Roles
1. Interpersonal 3. Decisional role
role  Entrepreneur
 Figurehead
 Disturbance handler
 Leader
 Resource allocator
2. Informational
role  Negotiator
 Monitor
 Disseminator
 Spokesperson
Universality of Management
 Managerial skills are transferable from one person to
another person.
 Management skills can be transferred to from one
organization to other organization.
 Management skills as per the Global scenario
managerial skills can transfer from one country to
another country
 Arguments Against the Universality Management
 Different in Objective
 Differences in philosophies
 Management Culture-bound

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