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AN OVERVIEW OF MAAGEMENT
Definitions
• Management is "the act of getting things done
through and with people in formally organised
groups.
• It is the act of creating an environment in which
people can perform as individuals and yet co-
operate towards attainment of group goals.
• It is the act of removing blocks to such performance
as a way of optimising efficiency in reaching goals.
LEVELS OF MANAGEMENT
EXECUTIVE
Chairman of the Board
CEO, COD, GM
MIDDLE MANAGERS eg. Division Directors Area managers, Plant managers,
Department Managers
SUPERVISORY MANAGERS eg. Supervisors, foremen, Office managers
WORKERSeg. Labourers, operators, artisans, professionals and
technicians NB Not part of management but part of the
organizational pyramid
MANAGEMENT SKILLS Skills - the various talents that managers need to perform their roles
effectively.
They are interrelated and are required by all managers but the relative
significance of each skill varies according to the level of the manager.
They include:
a) Technical Skills
b) Conceptual Skills
c) Diagnostic Skills
d) Human Skills
Technical Skills - skills a manager needs to perform
specialized tasks within the organization.
They are very important for first level managers because
they spend much of their working time with operating
employees.
They are less important for middle managers and even
less important, though not unimportant, to top managers.
E.g. writing computer programs, completing accounting statements,
analyzing marketing statistics, writing legal documents, drafting a
design for a new airfoil on an airplane
Conceptual Skills - This relates to a manager's ability to think in abstract.
They are more important for top managers because their job is to identify and exploit new opportunities.
These skills are moderately important to middle management and less important for first line managers.
E.g. thinking creatively, formulating abstractions, analyzing complex situations, and solving problems.
Diagnostic Skills - Are skills used to define
and understand situations. They are mostimportant at the top, moderately
important inthe middle and least important at the
bottomof the managerial hierarchy.
Human Skills (Interpersonal Skills, Human Relations Skills)Are skills a manager needs to work well withother people. They are equally important atall levels of organization because at everylevel, the manager interacts and works withpeople.
SKILLS OF MANAGEMENT
1
2 & 3
4
TOP MANAGEMENT
MIDDLE MANAGEMENT
SUPERVISORY
KEY1. Technical Skills2. Conceptual Skills3. Diagnostic SKills4. Human Skills
MANAGERIAL FUNCTIONSGenerally consists of 5 functions:1. Planning2. Organizing3. Staffing4. Directing5. Controlling
THE PLANNING FUNCTION Planning is simply the process of
developing plans Involves determining in advance what
should be accomplished and how it should be realized.
It involves setting the mission, corporate objectives, policies and procedures.
LEVELS OF PLANNINGThere are 3 levelsStrategic planningInvolves making decisions about the organization’s long-term goals andstrategies. Senior executives areresponsible for the development andexecution of the strategic plan.
Tactical planningThis translates broad strategic goals andplans into specific goals and plans that
arerelevant to a functional area in theorganization like marketing or HR. e.g.advertising plans.
Operational PlanningThis identifies the specific procedures and processes required at lower levelsof the organization. These plans arefor short periods and focus on routinetasks, e.g. delivery schedules, qualitycontrol, HR requirements.
The Decision Making ProcessIn essence planning involves deciding whichpath, among several, to follow.
In management, decision making is the process of selecting from among alternativecourses of action/strategies.
According to David Schwartz, it is made upof six identifiable steps:
i) Identify and define the Problem/Idea or Opportunity to be
Acted on
ii) Develop possible Alternative Solutions
iii) Gather Pertinent Information about Alternative Solutions
iv) Consider Constraints and Evaluate Alternatives
v) Decide, i.e. select an alternative
vi) Implement the Solution and Follow-up
Note: Decision making does not occur in a vacuum.
Environmental factors (internal and external) affect the
decision making process and the quality of decisions
made.
THE ORGANIZING FUNCTION An organization is a formalised intentional structure of
roles/positions. Organization is about people knowing the parts they
play in any team operation, and the way their roles relate to one another.
Departmentalization
Departmentalization: process of grouping homogenous activities
into units or sub-units for the purpose of efficient and effective use
of resources.
The primary bases for departmentalizing work of an organization are:
1. Functional– where jobs are specialized and grouped according to
business functions, i.e. production, marketing, HR, R & D, Finance,
2. Geographic Area - territorial departmentation
3. Customer– departmentalization by clients e.g. SOA, SMC
4. Product– all functions that contribute to a given product are
organized under one manager, sometimes with its own experts like
marketing, design, production, engineering.
Accountability, Responsibility, Delegation and Authority
Responsibility: obligation to perform work activities assigned
to an individual.
Authority: This means the person has the right to give orders,
draw upon resources and do whatever is necessary to fulfil the
responsibility.
Accountability: any means of ensuring that the person who is
supposed to do a task actually performs it and does so correctly.
Delegation: process of vesting decision making discretion in a
subordinate by a superior. That is, passing needed authority to
subordinates, by a superior, to accomplish responsibilities.
Centralization versus Decentralization of Authority
Centralization: degree to which authority is retained by
higher level managers ather than being delegated.
Advantages of Centralization
a.Produces uniformity of policies and action
b.Results in fewer risks of errors by subordinates who lack
either information or skill.
c.Enables closer control of operations.
d.Enables emergency decisions to be made.
Centralization versus Decentralization of Authority
Advantages of Decentralization
1. Speedier decision making without consulting higher levels.
2. Decisions are more likely to be adopted to local conditions.
3. Greater interest and enthusiasm on the part of the
subordinates to whom the authority has been entrusted
4. The expanded jobs provide excellent training experiences and
chances for promotion to higher levels for subordinates.
5. Allows top management to utilize time for other things
NB: The advantages of one, are the disadvantages of the
other.
Factors affecting the Degree of Centralization/Decentralization of Authority
Size and Complexity of the Organization: The larger the
enterprise, the more authority the central manager is forced to
delegate.
Dispersion of the Organization: It tends to result in greater
decentralization of authority e.g. General Motors, Barclays Bank
etc.
Competence of Personnel Available: Will lead to decentralisation
Philosophy of Top Management: Autocratic vs Democratic.
Importance of the Decision: vital decisions centralise
Uniformity of Policy: The greater the need for uniformity of
policy, the greater will be the degree of centralization. The reverse
is true.
Power and Authority
Authority: Is the right to decide, to direct others to take
action or to perform certain duties in achieving
organizational goals. It is the right of a person to give
commands, require performance or obedience, take
actions or make final decisions.
Power: Is the ability to influence the belief, actions or
behaviour of other persons or groups. Unlike authority
which is official/legitimate, power is largely personal.
Distinction between Power and Authority
i. Authority is positional while power is personal
ii. Authority has only one source - position in the organizational hierarchy -
but power has several sources
iii.Authority usually flows from top to bottom but power can flow the other
way.
iv.Authority can be delegated but some forms of power e.g. expert power
cannot.
v. Acceptance of authority is mandatory but this is not the case for power.
vi.Pervasiveness - Power is all pervasive and can be found at the lowest levels
of an organization because it is not invested in a position.
Sources of Power
1. Legitimate Power (Authority): Results from a person being placed
in a formal position of authority e.g. General Manager
2. Reward Power: Derived from a person's ability to reward another.
3. Coercive Power: Derived from the ability to punish or recommend
punishment.
4. Referent/Charismatic Power: Based on a liking or a desire to be
like the power holder. e.g. musicians' dress code seems to have a
great impact on the Kenyan Youth.
5. Expert power: It comes from a person possessing special
knowledge or skill - e.g. Lawyers, doctors etc., may have
considerable influence on others because they are respected for
their special knowledge.
The Span of Management.It is the number of subordinates reporting directly to a superior.
Factors affecting the span of management:
1.Capacity and Philosophy of the Superior: If a manager comprehends
and resolves problems quickly, gets along with staff easily, commands
loyalty etc. he/she can easily supervise many people.
2.Ability of Subordinates: The more competent, well trained and
experienced staff are, the less guidance they need and therefore the
more of them a superior can supervise.
3.Nature of Work: the more complex the work, the shorter/narrower
the span of management. The reverse is true. However the span can
be wider if the manager is supervising employees performing similar
jobs.
The Span of Management.Factors affecting the span of management:
4.Degree of Decentralization: In highly decentralized
organizations, a manager does not have to make many decisions
himself and can therefore supervise a large number.
5.Geographic Dispersion: Where operations are geographically
dispensed, spans tend to be narrow because territorial
separation makes personal contacts difficult.
6.Level of Management:Spans at the lower levels of management
tend to be wider than at higher levels. High level managers are
involved in several other activities e.g. planning besides
supervision. At lower levels, also, work tends to be routine
allowing for a wider span.
DIRECTING
This topic covers 2 main aspects of directing namely:
Motivation,
Leadership
Communication
Motivation: usually described as 'doing a job because you want
to' as opposed to doing it because you have to. Motivation has
been explained through various theories, most common is
Maslow’s.
Leadership: it is influencing others to do what the leader wants
them to do. It is the art of inspiring subordinates to perform
their duties willingly, competently and enthusiastically.
LEADERSHIP STYLES
1. Autocratic Leadership: such a leader commands
and expects compliance and leads by the ability to
withhold or give rewards and punishment.
2. Democratic/Participative Style: consults with
subordinates on proposed actions and decisions and
encourages participation from them.
3. The Free-reign Leader: uses his/her power very
little if at all, giving subordinates a high degree of
independence in their operations. Such leaders
depend largely on subordinates to set their own goals
and the means of achieving them.
STAFFING It is the process of ensuring that the organization has
qualified workers available at all levels and at all times to meet its objectives.
Staffing is made up of the following elements as shown in the diagram:
J
O
B
ANALYSIS
HUMAN RESOURCE PLANING
RECRUITMENT
SELECTION
Internal Staffing AdministrationCareer managementOrientationPerformance appraisalEmployee assistance programsStatus changes
HUMAN RESOURCE PLANNING
It is the process of systematically reviewing personnel
requirements to ensure that the required number of
employees with the required skills are available when they
are needed.
Forecasting HR requirements involves determining the
number and type of employees needed for each level and
location.
When the analysis indicates a personnel shortage, the firm
must initiate recruitment effort.
When the analysis predicts a personnel surplus, restricted
hiring, early retirements or layoffs may be required.
THE SELECTION PROCESS The ultimate objective of recruitment is to select
individuals who are most capable of meeting the requirements of the job.
Selection is the process of identifying those recruited individuals who will best be able to assist the firm in achieving organizational goals.
INTERNAL STAFFING ADMINISTRATION (ISA)Internal staffing administration (ISA) includes the following activities:
1.Career Management - a formalised approach to ensure that
employees have opportunities to maximise their potential.
2.Employee Assistance Programs - Are systematic effort to help
employees cope with problems that interfere with their productive
ability on the job and their personal happiness.
3.Performance Appraisal - It provides the periodic feedback needed
to evaluate the effectiveness of recruitment and selection
processes. It also identifies training needs.
4.Orientation - the process of introducing new employees to the job,
the company and other employees to confront any confusing
situations.
CONTROLLING
Control is the systematic process by which managers
ensure that the organisation is reaching its objectives and
carrying out the associated plans in an effective and
efficient manner.
It is the process of comparing actual performance with
standards and taking any necessary corrective measures
to ensure that performance is in line with the manager’s
objectives.
CONTROLLING
Controls come in various forms:
Time controls relate to deadlines and time constraints.
Material controls relate to inventory and material-yield
controls.
Equipment controls are built into the machinery, imposed on
the operator to protect the equipment or the process.
Cost controls help ensure cost standards are met.
Employee performance controls focus on actions and
behaviors of individuals and groups of employees. Examples
include absences, tardiness, accidents, quality and quantity of
work.
CONTROLLING
Controls come in various forms:
Financial controls facilitate achieving the organization's
profit motive. One method of financial controls is budgets.
Operations control methods assess how efficiently and
effectively an organization's transformation processes
create goods and services.
The Control Process : steps in the control process
I. Establishing performance objectives and standards:
A standard is the level of expected performance for a given goal.
Standards establish desired performance levels and serve as
benchmarks against which to assess actual performance.
They can be set for any activity, e.g. financial activities, operating
activities, legal compliance etc.
For each of the activities, performance stds are set with respect to.
Quantity (e.g. cutting costs by 15%, increasing market share by 20%)
Quality (Number of defects, quality of service)
Time used (on-time availability of finished goods, speed of delivery)
Cost (Total expenditure)
The Control Process : steps in the control process
ii) Measuring actual performance
Performance levels are then measured. Managers can for
instance count units produced, days absent, shillings
earned etc.
Personal observation, statistical reports, oral reports and
written reports can be used to measure performance.
Computers are important tools for measuring performance.
iii) Comparing performance with standards set
The manager then does comparisons of the performance
with the standards and expected results. He then analyses
and evaluates the deviations.
The Control Process : steps in the control process
iiv) Taking necessary corrective action
Action is then taken to correct the significant deviations.
This ensures that operations are adjusted where
necessary to achieve the initially planned results.
These adjustments are initiated by those who have
authority over the actual performance, e.g. the
supervisors.
Types of Control
i) Preliminary Controls/Feedforward Control
It is future oriented and its aim is to prevent problems
before they arise.
Instead of waiting for results and comparing them with
goals, a manager can exert control by limiting activities in
advance. E.g. having formal rules and procedures which
prescribe people’s actions before they occur.
This specifies in advance what actions can/not be taken.
Types of Control
ii) Concurrent Controls
E.g. on the production floor, all efforts are directed
toward producing the correct quantity of the right
products in the specified amount of time.
E.g. Supervisors watch employees to ensure they work
efficiently and avoid mistakes. With advances in IT,
computers are used to track errors per hour, machine
speeds etc to correct small production problems before
they become disasters.
Types of Control
iii) Feedback Controls
This implies that performance data was gathered and
analysed and the results returned to someone to make
corrections. E.g. supervisors can correct improper
performance after getting feedback.
Examples of feedback controls include timely (weekly,
monthly, quarterly, annual) reports so that almost
instantaneous adjustments can be made.
Timing is an important aspect of feedback control. If
feedback on performance is not timely, managers cannot
quickly identify and eliminate the problem and prevent harm.
Grouptwo or more interacting and interdependent individuals who come together to achieve particular goalsformal groups - established by the organizationhave designated work assignments and specific tasks
different types existinformal groups - occur naturally in the workplace in response to the need for social contact
Stages of Group Developmentforming - people join the group either because
of a work assignment or for some other benefit begin to define the group’s purpose, structure, and
leadership stage marked by much uncertainty
storming - acceptance of the group’s existence conflict over who will control the group
norming - relationships and a sense of group identity develop group assimilates a common set of expectations of
what defines correct member behavior
performing - group structure is functional and acceptedgroup energy has moved to task performance
adjourning - group prepares to disbandattention devoted to wrapping up activities
group does not necessarily become more effective as it moves through the first four stagesgroup effectiveness is a complex issue that is
affected by factors other than developmental stage