1.concepts, Principles and Functions of Management
1.concepts, Principles and Functions of Management
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LEARNING OBJECTIVES
At the end of this lecture, the student:
Should be familiar with the definitions of management
Understand the concepts, principles and functions of management
List and describe with examples the levels and skills of management
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INTRODUCTION
Management is a broad term and so its meaning varies depending on
the setting.
It transcends the traditional boundaries of narrowly defined
disciplines and it is therefore multi-disciplinary: philosophy, political
science, economics, engineering, mathematics, sociology, psychology
and anthropology.
Management is not administration or leadership, which are both
aspects of management
An administrator works within the framework of a set of rules and
regulations in the rigidity of the set system, whereas a manager works
with a positive attitude and seeks solutions to problems and challenges
Leadership is the process of motivating other people to act in
particular ways in order to achieve specific goals. It is the process of
inspiring others to work hard to accomplish important tasks.
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DEFINITION OF MANAGEMENT
Some of the definitions are:
The process of taking responsibility for getting things done through
people.
Getting things done economically and effectively through people in
order to achieve the objectives and policies of the organisation.
Taking responsibility for the efficient use of resources to achieve
objectives effectively; i.e. to achieve the intended results at the least
cost without wasting scarce resources.
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CONCEPTS OF MANAGEMENT: THEORIES
Scientific Management Theory:
Credited to Frederick Winslow Taylor (1856-1915).
Talked about specific objective by which industrial efficiency is
achieved.
He applied science to problems of management. His scientifically
determined management practice resulted from standardization of
working methods and work conditions.
People that are able to perform well are encouraged to stay at their
job and people that didn’t perform well should be encouraged to
leave.
He demonstrated the importance of compensation to enhance
performance.
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CONCEPTS OF MANAGEMENT: THEORIES
Bureaucratic theory:
Credited to Max Weber 1864-1920)
Division of labour among workers
Offices arranged in hierarchy
Performance governed by set rules and regulations
Separation of personnel and official property
Selection of personnel based on technical competence
Employment regarded as a career by employee
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CONCEPTS OF MANAGEMENT: THEORIES
Classical/ Functional School:
Credited to Henry Fayol 1916
He was regarded as the father of modern organizational
management theory.
He propounded 14 principles of management
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PRINCIPLES OF MANAGEMENT
These are based on 14 principles of management propounded by
Henry Fayol 1916
1. Division of work: Work must be properly subdivided in order to
reduce span of attention or effort.
2. Authority and Responsibility: The right to give orders should not
be considered without reference to responsibility. The
responsibility is natural consequence of authority, whenever the
former is exercised, the latter appears.
3. Discipline: Outward marks of respect in accordance with formal
and informal agreement. Good order and discipline are
necessary for work to proceed smoothly.
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PRINCIPLES OF MANAGEMENT CONT.
4. Unity of Command: One man, one superior. No employee should
be placed in a position of having to obey orders from more than
one superior.
5. Unity of Direction: There should be one head and one plan for a
group of activities that should lead to the accomplishment of a
single objective (work specialization).
6. Common Interest: Interest of individuals should be subordinated to
the common interest. Organizational interest should prevail over
personnel ones.
7. Remuneration: Payment should be fair to employees so as to
encourage job performance.
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PRINCIPLES OF MANAGEMENT CONT.
8. Centralization: Decreasing subordinates decision making
depending on the size of company and quality.
9. Scalar chain (hierarchy): line of authority to be established.
10. Order: Materials and people in the right places and at the right
time
11. Equity: All dealings must be fair, and also seen to be fair. A
combination of friendliness and justice to workers.
12. Stability of tenure: High employee turnover rate is not good for
efficient personnel functioning of organization.
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PRINCIPLES OF MANAGEMENT CONT.
13. Initiative: Staff to be encouraged to show initiative within limit of
authority and discipline.
14. Esprit de Corp: (Team Spirit, team work) – Team work must be
encouraged because harmony has a great strength in the
organization.
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FUNCTIONS OF MANAGEMENT
Basically, there are three management functions
P – planning
I – implementing
E – evaluation
Acronym “PIE”
Implementation is further divided into 4:
Organizing
Staffing
Leading (directing)
Controlling
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FUNCTIONS OF MANAGEMENT: PLANNING
Planning determines what is to be done.
Examining the future and drawing up a plan of action.
It involves setting objectives & choosing alternative courses of action
towards their attainment.
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FUNCTIONS OF MANAGEMENT:
ORGANISING
Organising: ensuring order in the deployment of resources.
It builds up the structure, both material and human to make it
possible for groups of people to do work.
It involves assessing the programmes and activities and deploying the
right persons to the right job, to avoid under-utilization or over-
utilization of human resources.
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FUNCTIONS OF MANAGEMENT: STAFFING
Staffing: ensuring that positions on the organisational chart are
filled with adequate numbers of staff, with appropriate skills &
attitudes.
This involves filling and keeping filled the positions in the
organisation with the right persons.
It is an ongoing activity as employees keep leaving and joining the
company from time to time.
This is done through identification of work force requirement,
inventory of available manpower, recruiting, selecting, placing,
promotion, career planning, compensation and training.
Efficiency is a prime focus of staffing.
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FUNCTIONS OF MANAGEMENT: LEADING
It is also called directing
It means motivating personnel to work with sustained zeal towards
organisational objectives.
To motivate and get the people to work willingly and effectively.
This will ensure that the workers contribute to the achievement of the
organisational goals.
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FUNCTIONS OF MANAGEMENT:
CONTROLLING
It is the continuous surveillance to ensure that the work is done
according to plan.
It is measuring and correcting the activities of subordinates to ensure
that events conform to plans.
Seeing that everything occurs in conformity with established rule and
expressed command.
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FUNCTIONS OF MANAGEMENT:
EVALUATION
Assessing progress towards predetermined objectives.
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LEVELS OF MANAGEMENT
There are basically three levels of management, namely:
1. Strategic or Top Level
2. Tactical or Administrative or Middle Level
3. Operational or Supervisory Level
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LEVELS OF MANAGEMENT:
STRATEGIC OR TOP LEVEL
The managers at this level are ministers, commissioners, directors of
various departments in health ministries and agencies, members of
boards of managements in teaching and other tertiary hospitals,
CMDs and MDs, DCST, DOAs etc.
Managers at this level, formulate policies, set organizational goals,
strategic planning, allocation of resources, corporate evaluation etc.
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LEVELS OF MANAGEMENT:
TACTICAL OR ADMINISTRATIVE OR MIDDLE
LEVEL
Managers at this level are concerned with translating policies and
interpreting them according to local needs, defining the means of
implementation, structuring, authority and responsibilities,
coordination of activities etc.
The managers at this position in tertiary hospitals include: heads of
department, consultants, matrons, etc.
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LEVELS OF MANAGEMENT:
OPERATIONAL OR SUPERVISORY LEVEL
Managers at this level are concerned with the day-to-day activities
and services of the organisation viz: processes, outputs, activity
scheduling, monitoring of performance, utilization of resources,
inventory control etc.
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MANAGEMENT SKILLS
Three managerial skills that are essential to successful management
are human, technical and conceptual skills. (Acronym: HTC)
1. Human skill involves the ability to interact effectively with
people. Managers interact and cooperate with employees.
2. Technical skill involves process or technical knowledge and
proficiency. Managers use the processes, techniques and tools of
a specific area.
3. Conceptual skill involves the formulation of ideas. Managers
understand abstract relationships, develop ideas, and solve
problems creatively.
Thus, technical skill deals with things, human skill concerns people, and
conceptual skill has to do with ideas.
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LESSON SUMMARY
In this lecture, the following have been treated:
The concepts of management
The principles of management
The functions of management and
The levels and skills of management
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