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1 Introduction To MGT

Management involves planning, organizing, staffing, leading, and controlling organizational resources to achieve goals. It is a universal function necessary for all organizations. Management entails making decisions, coordinating activities, handling people, and evaluating performance. The emergence of management as a discipline is traced back to ancient civilizations, though it developed further during the Industrial Revolution. Administration determines policies and objectives at higher levels while management executes plans through others at lower levels. Management is both a science, in its body of knowledge, and an art in its application to solve problems. The five core management functions are planning, organizing, staffing, leading, and controlling.

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0% found this document useful (0 votes)
4 views

1 Introduction To MGT

Management involves planning, organizing, staffing, leading, and controlling organizational resources to achieve goals. It is a universal function necessary for all organizations. Management entails making decisions, coordinating activities, handling people, and evaluating performance. The emergence of management as a discipline is traced back to ancient civilizations, though it developed further during the Industrial Revolution. Administration determines policies and objectives at higher levels while management executes plans through others at lower levels. Management is both a science, in its body of knowledge, and an art in its application to solve problems. The five core management functions are planning, organizing, staffing, leading, and controlling.

Uploaded by

Leul Dawit
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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UNIT 1

Introduction to management

March 24, 2024 1


Organization & the need for management
Organization
Is a place where two or more people work together
in a structured way to achieve a specific goal
believing there is a benefit working together to
achieve a common goal
What does goal mean?
Goal:
 is the purpose that organization strives to achieve.
 is the reason to exist and an organization can not
exist without a goal

March 24, 2024 2


What do all organizations need to achieve
goals?
To achieve goals all organizations should;-
Have a method and
Have to acquire and allocate resources
(finance, material, information and people )
Need management.

March 24, 2024 3


Hence Management is universal and essentially
necessary function for all kinds of organizations
This is because every organization requires:-
• The making of decisions
• The coordinating of activities
• The handling of people and
• Evaluating the performance directed toward its
goal…...

March 24, 2024 4


WHAT IS MANAGEMENT?
Management: -
is the process of planning, organizing, staffing,
leading, and controlling the work of organization
members and of using all available organizational
resources to reach the stated organizational
goals.

It is a process of reaching predetermined


organizational goals by working with & through
people & other organizational resources (finance,
material, information, and people ).
March 24, 2024 5
Management(Cont’d): -

It is a process of utilizing efficiently the


available resource to achieve organizational
goals.
It is the practice of consciously & continually
shaping organizations.

March 24, 2024 6


Planning :-
means managers think of their action in advance.
It is the determination of what is to be done, how
& where it is to be done, who is to do it, & how
results are to be evaluated.
Organizing :-
means that managers organize & coordinate their
human, material, financial & informational
resources of the organization.
Staffing:-
 means managers attempting to find the right
person for each job
March 24, 2024 7
Leading :-
means the manager motivate & direct subordinates.
Controlling :-
means that managers attempt to ensure that there is
no deviation from the predetermined plan.
Managers attempt to assure that the organization is
moving toward its goals.

March 24, 2024 8


Emergence & development of
management thought
 Management as a separate & distinct subject with
different theories & techniques is a product of the
20th century.
 The origin of this discipline was the work of
Frederick Winslow Taylor during the scientific
management movement around 1900.
 However, the problem of organizing men to achieve
the desired objective is not new. It is as old as
civilization itself.

March 24, 2024 9


Emergence of mgt(Cont’d)
 Many agree that the evidence that effective
management of very complex social groups has
existed ever since down of civilization/from a past time
until now.
 It is obvious to that early civilization such as the
Egyptians, the Greeks & even the Roman Empire
could not have existed if it had not been for some
very well developed administrative organizations &
procedures.

March 24, 2024 10


Emergence of mgt(Cont’d)
Even before these civilizations, there is reason to
believe that thought & efforts have been expended
on formulating a basic management process.
Evidence to illustrate the fact that interest in
management as a process existed in antiquity can
be found in the Bible. Exodus 18, verses 13
through 26, describes how Jethro, who was Moses'
father-in-law, provided Moses with several
recommendations which are the early forerunners
of our management concepts.
March 24, 2024 11
Emergence of mgt(Cont’d)
 The Roman Catholic church has played an
important role in its organizational effort &
development of the hierarchy of authority
(Pop-Bishops-Priests-Deacon)
 Military organizations - Unity of direction, use of
staff for line personnel was initially created in
military organizations
 Thousands of years ago the Chinese, the
Babylonians, the Egyptians, the Greek, the
Romans & Hindu Philosophers wrote extremely
interesting books & propounded theories which are
followed even today
March 24, 2024 12
Emergence of mgt(Cont’d)
 With the advent of industrial revolution
management of enterprises assumed an increasingly
important role.

March 24, 2024 13


Administration and management:
The term "Management“&"Administration"
are used interchangeably in government and
business organizations.
Administration
Means overall determination of polices and
major objectives.
Functionally it is :-
• the laying down of the general purpose of the
organization.
• the framing of its major polices.
• the formulation of general plan of procedure.
March 24, 2024 14
• the inauguration of broad programme.
• approval of specific major projects that fall
within the general programme.
Management
Is essentially an executive function, the
active direction of human effort.
It is the work that a manager seeks to get
results through other people.
As a function, administration is determinative
and management is essentially executive. Yet
the same person may perform both functions .
March 24, 2024 15
-President

Administration -Vice President


- Faculty

- Department

Management - Division
- Units

March 24, 2024 16


As we go down the hierarchical ladder, the
administrative function became less and less and
the management functions more and more.

March 24, 2024 17


MANAGEMENT AS AN ART, SCIENCE & A
PROFESSION
Management as a science
• Management is a social science and deals with the
behaviour of people in the organization
Management as an Art and Profession
• Engineer uses science of engineering while building
a bridge.
• Manager uses the science (knowledge, theory) of
management while performing his/her managerial
functions.

March 24, 2024 18


 Engineering is a science, and its application to the
solution of practical problem is an art.
 Similarly, Management as the body of knowledge
and discipline is a science.
 Its application to the solution of organizational
problems is an art.
 Therefore, Management is a science as well as an
art and a profession.

March 24, 2024 19


MANAGEMENT FUNCTIONS
• Management functions describes what managers do
• Basic management functions or activities are:
1) Planning
• helps to deal with the present & anticipate the future.
• It involves what to do, who will do, when to do,
where to do, how to do………..
• It is the process of establishing goals & a suitable
course of action to achieve the goals.
• Planning is a 10 management function.
• Through planning managers clearly put & outline
exactly what organizations must do to be successful.
March 24, 2024 20
MANAGEMENT FUNCTIONS (Cont’d)
2) Organizing
Managers coordinate the human & material
resource of the organization.
Organizing creates a mechanism to put plans
into action. How?
- Through assigning the tasks developed
during planning to individuals/groups
within the organization.
It is the process of arranging & allocating work,
authority & resources among organization
members to achieve goals.
March 24, 2024 21
2. Organizing (Cont’d)
Involves establishing authority & responsibility
relationships; division of work, job design,
coordination, information & feedback systems in
the organization.
It is a preparation of organizational design:-
• The process of matching an organizational
structure to goals and resources
3. Staffing
 is attempting to find the right person for each
job to fill the various positions in the
organization
March 24, 2024 22
4) Leading (directing)
Primarily concerned with people in the
organization.
It is the process of directing & influencing the
task-related activities of group members or an
entire organization.
The process of guiding the activities of
organization members in appropriate direction.
Is influencing, actuate (activate ,motivate) & directing
people so that to make them do their work voluntarily

March 24, 2024 23


5) Controlling /Evaluation
• Is the process of ensuring/ conforming the
actual activities in relation to planned
activities.
• A function for which managers:
Establish standards of performance
Gather information and Measure current
performance
Compare performance with standard
Taking corrective action

March 24, 2024 24


1. Planning Planning (P)
2. Organizing
3. Staffing Implementation (I)
4. Leading
5. Controlling- Evaluation (E)

• In addition to these three broad sequential


functions( Planning, Implementation & Evaluation
(PIE), two continuous functions of management
are:-
Communication &
Decision- Making
March 24, 2024
 The relationship between function of Management depicted by figure as
follows:-
Communication

Decision-Making

Figure 1:- Functions of management

The diagram shows Planning, Implementation &


Evaluation as the three slices of a PIE.
The arrows link the three functions to emphasize the
spiral/continuous cycle of management.
March 24, 2024 26
COMMUNICATION
 It is necessary for sharing ideas/information between the
Manager, Staff and the Community during the process of
planning, implementation & evaluation.

DECISION MAKING
• Is choosing between or among alternatives.
• Is a function made at all levels from planning up to
controlling
• Is employed during
- Planning Each one of them require
- Implementation decision making as a task
- Evaluation
March 24, 2024 27
WHO ARE MANAGERS?
Managers - are people formally appointed to
positions of authority in organizations who enable
others to do their work effectively, who have
responsibility for resource utilization, & who are
accountable for work results.

March 24, 2024 28


Types of managers
(Classification by management level in the
hierarchy)
1.First-line (first/lowlevel /Supervisory) managers:
• Responsible for the work of operating and do not
supervise other managers
• Direct non-management employees & have
authority & responsibility for overseeing a specific
type of work and a particular group of workers.
• Are 1st or lowest level of managers in the
organizational hierarchy.
• E.g. Supervisors, School directors, Coaches, etc
March 24, 2024 29
2. Middle managers
• Managers in the mid range of the organizational
hierarchy
• They are responsible for other managers &
sometimes for some operating employees
• They report to more senior managers .
• E.g. Department heads, Heads of services, etc

March 24, 2024 30


3. Top / senior /managers
• Mangers responsible for the overall management of
the organization
• They establish operating policies and guide the
organization’s interaction with its environment.
• They are small in number
• E.g. President, Vice president , etc

March 24, 2024 31


Types of skills needed for successful Mgmt
1. Technical skill:
• the ability to use procedures, techniques &
knowledge of a specialized field
• Using specialized knowledge & expertise in
executing work related techniques &
procedures.
• Related to things :process or physical objects
• Lower level managers require more than the
higher level managers

March 24, 2024 32


2. Human (Interpersonal) skill :
• The ability to work /get along with, understand,
motivate, & lead other people as individuals.
• Builds cooperation among the team.
• Working with people: Attitude, communication.
• Equally required by all level of managers

March 24, 2024 33


3. Conceptual skill:
• Ability to see the organization as a whole
• The mental abilities of managers to visualize the
complex relationships in a workplace-among
people, departments, various organizations….
• the ability to better understand how various
functions of the organization complement one
another
• The relationship of the organization to its env’ t
• How changes in one part of the organization affect
the rest of the organization
• Higher level managers require more than the lower
level managers
March 24, 2024 34
March 24, 2024 35
In summary
• All managers use all these three types of skills in
performing management work but in different mix
(degree).
• The top manager is vitally concerned with how the
service in general fits into the organization.
• In contrast the low level manager, whose 10
function is to troubleshoot an entire operating staff,
constantly required to make decisions on the basis of
technical knowledge of procedures while rarely
having time to think about the relationship of the
specific service to other departments of the
organization.
March 24, 2024 36
MANAGERIAL ROLES
• According to Henry Mintzberg the roles managers
play are categorized as follows:-
1. Interpersonal Roles-
The three interpersonal roles are:-
a) Figurehead role –
• He represent his organization in activities that are
ceremonial and symbolic in nature;
• as a symbol of legal authority, attending
ceremonies, signing documents, etc.

March 24, 2024 37


1. Interpersonal Roles (Cont’d) -
b) Liaison role
• Link(connect) both the internal and external of
the organization
c) Influencer (leadership) role
• He direct and coordinate subordinate activities
• Includes motivating & leadership when they
seek to inspire,

March 24, 2024 38


2, Informational Roles –
The three informational roles are:
a) Monitor roles- -
• He is seeking out, receiving and screening
information that could affect the organization
• Filter, evaluate and choose to act or react to that
information.
b) Disseminator role :-
• He shares information with subordinates and other
members
• Communicating selected information to
subordinates and other members.

March 24, 2024 39


2, Informational Roles (Cont’d) –
c) Spokesperson roles- -
• He transmits information to people outside the
organization as the official of the organization
• Represents and speaks on behalf of the
organization.
• Communicating selected information to outsiders.

March 24, 2024 40


3. Decision-Maker roles-
There are four decision maker roles:
a) Entrepreneur roles-
• He designs a planned change and makes it to be
implemented to improve the position of the
organization
• Change agent: designing and initiating changes
within the organization.
b) Disturbance Handler roles-
• They handle both internal and external
disturbances and take corrective action.
• They anticipate disturbances and resolve conflicts.

March 24, 2024 41


3. Decision-Maker roles (Cont’d) -
c) Resource allocator roles-
• Managers decide who gets what based on priority
setting.
d) Negotiator roles -
• He meets and discuss different individuals,
groups and government officials
• Managers choose how to interact with their
superiors, peers, & subordinates. i.e. Negotiating
with other parties representing organizational
interests

March 24, 2024 42


Figure :-Ten key roles of managers (Mintzberg 1989)
March 24, 2024 43
MANAGEMENT AND ENVIRONMENT:
• Health service organizations exist in the larger
environment they are not isolated.
• They are affected by the external environment
and vice versa.
• Management performs all the functions of
management in interaction with its environment

March 24, 2024 44


Management through its functions

Convert

In puts
Materials
Technology
Environment Information
Finance
Human Resource
Time
into
OUT PUTS
•Products
March 24, 2024
•Services 45
Categories of relevant environment of management

1.General Environment
• Is part of the External environment
• Represent environmental elements that are of
concern for all organizatios
• Includes :- Economic , technological ,political ,
and social environment including national and
International Issues

March 24, 2024 46


a. The Economoic environment :-
• Is one of the general determinant factor for
organizations
Includes :- Availability & prices of capital &
labour, government monetary & fiscal policies,
Tax programs/reform, Rate of inflation, Pricing
policies, etc.
b. The Technological environment
• New developments or production in the field,
• Alternative ways of meeting the service
requirement
• Refers knowledge on how to design, produce &
distribute & sell goods and services
• Eg.:- New medical equipments, machines,
materials,
March 24, 2024 services, products, methods, strategies, etc. 47
c. The political environment :-
Includes:-; Government policies, Laws &
directives, regulations , etc
 in the formation, taxation & control of
organizations, to protect workers (safety & health
hazards) , to protect consumers & patients
 subsidization, supporting research &
development , etc
d. The Social environment :-
• Refers attitudes, beliefs, culture, changes in
life style, expectation and values of service
users, Population and demographic trends,
etc
March 24, 2024 48
2. The task environment
• Is part of the external environment
• Includes :-Individuals , groups and other
organization with which organization specifically
interrupt
• E.g. Suppliers, customers and clients, competitors,
agencies that regulate the organization, etc.
3. The internal organization (environment)
• Refers the internal environment
• It includes :-Workers, Mangers, Management styles,
Internal policies, etc
March 24, 2024 49
In summary
• The interaction/relationship between managerial
functions & the environment occur because
organizations are open systems.
• They acquire their inputs from the environment in
the form of:- Human Resource , Information,
Materials , . Finance & Technology
• The organizations process these inputs into
outputs in the form of goods, services & deliver
them to the environment.
•Management while performing its various
functions continually adopt itself to changes
occurring in its environment.
March 24, 2024 50
Concepts &principles in management
•In the process of fulfilling his/her managerial duties
the manager would apply the following concepts and
principles.
CONCEPTS IN MANAGEMENT
1. Effectiveness
• Effectiveness is the degree to which a stated
objective is being achieved. It is something that
management tries to improve.
2. Efficiency
• It is concerned with the balanced use of
resources (money, material, human resource,
information, time, and space)
March 24, 2024 51
CONCEPTS IN MANAGEMENT (Cont’d) -
3. Economy (of Scarce Resources)
• Some, and often many, resources are scarce and
costly. Thus we have to economize
4. Information
• Management needs information if it is to make
the right decision for action.
• At the same time, information can easily
handicap management, if it is not the right kind,
at the right time and, in the right hands.

March 24, 2024 52


PRINCIPLES IN MANAGEMENT
1. Management by Objectives
•Every activity of a given organization must
have an objective.
•Management sees that objectives are specified &
then that they are achieved.
•The objective should state:
What is to be accomplished
How much of it
Where it is to be done
When it is to be completed.
•Therefore, a clear statement of objectives makes it
possible to evaluate how effective one is in
approaching and reaching the objectives.
March 24, 2024 53
2. Learning from Experience
• Analysis of the results between the objectives &
achievement made.
• For better performance there should be feedback to
learn form the experience gained.

March 24, 2024 54


3. Division of Labour
• This is the principle of specialization that maintains
that work should be distributed among members of a
group.
• Where there is work specialization & division of labor,
each kind of manpower exercises its own knowledge &
skill towards achieving the set objective.
• Management attempts to bring about balance of work
among the different people concerned.

March 24, 2024 55


4. Substitution of Resources
• Often when the resources that are normally used to
provide service became scarce or too expensive,
different resources may be used to provide the intended
results.

March 24, 2024 56


5. Convergence of Work
 Work activities should be designed and directed so
as to support each other towards achievement of
objectives.
 It also implies that working relations should continue to
the success of each activity and so to general
effectiveness.
 These working relations of activities are:-
the logical relations with each other
time relations or sequence
spatial relations between activities
functional and structural-working relations between
people
March 24, 2024 57
6. Functions Determine Structure
When the work is defined i.e. the function & duties of
the individual members of the team are clearly defined &
known to all.
The working relations (the structure) then follows.
The exact nature of authority will be clearly delineated
on the structure.

March 24, 2024 58


7. Delegation
 Delegation is the process whereby somebody’s
authority is lent to another person, conditionally or
not so that to enable that person to take responsibility
when the occasion arises.
 It is the most forward thinking principle whereby as
many operating tasks as possible are granted to the
subordinate.

March 24, 2024 59


8. Management by Exception
 In effect this means two things:-
• Don't be overloaded with the routine, unnecessary
information, be selective.
• Make big decision first.
• Managers at each level should concentrate only on
strategic & highly important tasks & leave the routine
tasks to operating personnel.
• In short management by exception means:-
selectivity in information
priority in decision

March 24, 2024 60


9. Shortest Decision-Path
• This principle deals with issue
Who should make which decision?
When and where?
Decision must be made as closely as possible in
time and place to the object of decision & to those
affected by it.

March 24, 2024 61


10. Principle of One Boss/ Unity of command
 A sub-ordinate should receive orders & be
accountable to only one boss at a time.
 A sub-ordinate should not receive instructions
from more than one person
 Dual sub-ordination should be avoided

March 24, 2024 62


11. Unity of direction
 Organizational activities must have one
central authority/ head & one plan of action.
 Efforts of all the members of the organization
should be directed towards common goal
 Without unity of direction, unity of action
cannot be achieved.

March 24, 2024 63


12. Espirit De’ Corps
 It refers to team spirit.
 Teamwork is fundamentally important to an
organization.
 Inspires workers to work harder
 Interest of the undertaking in the long run.
 The managers should infuse team spirit &
belongingness

March 24, 2024 64


13. Discipline
 Sincerity, Obedience, Respect of authority &
Observance of rules and regulations of the
enterprise.
 Subordinate should respect their superiors
& obey their order
 Smooth running of the enterprise

March 24, 2024 65


14. Equity
 In organizations, equity is a combination of
kindliness & justice.
 Both equity & equality of treatment should be
considered when dealing with employees.
 Fairness is important in management-employee
relations

March 24, 2024 66

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