BusAdmin Chapter 1

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Chapter 1

Nature of ManagementThis chapter introduces the

concept & the elements ofManagement. It identifies majorschools of management thought anddescribes how they evolved. Modernapproaches are emphasized & therole of the manager is closelyexamined.


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Administration & Managementby Brech

Administrationthat part of the

management process concerned with theinstitution and carrying out of procedures bywhich the program is laid down &communicated, and the progress of activities

is regulated & checked against targets & plans. Managementa social process entailing

responsibility for the effective & economicalplanning & regulation of the operations of an

enterprise, in fulfillment of a given purposeor task.


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Concept of ManagementManagement may be defined asa process whereby scarceresources (human, material, &financial) are combined toachieve organizational goals.Without management, people

would pursue their ownobjectives independently and thiswould lead to waste &

inefficiency.


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OrganizationThe framework of the management

process as formed by the definition of: The responsibilities by means of which the

activities of the enterprise are dispersed among

the ( managerial, supervisory & specialist)

personnel employed in its service.

The formal interrelations established among the

personnel by virtue of such responsibilities.

*Its purpose is to create an arrangement ofpositions & responsibilities through & by means

of which an enterprise can carry out its work.


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Development of Management Thought

The development of management thought

can be considered to comprise four mainperiods:

Early influences

The scientific managementmovement

The human relations movement

Modern influences


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Early Influences

Ancient records in China & Greece indicate the

importance of organization & administration, but donot give much insight into the principles of

management. Outstanding scholars have referred to

management activities in the running of city states &

empires.In the period 1400 to 1450, merchants in Venice,

Italy, operated various types of business organization,

e.g. partnerships, trusts & holding companies. Control

emerged in the form of a double-entry book-keepingsystem & related documentation & records. Also,

there was standardization of material & systems of

inventory control.


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The Scientific Management Movement

In the years after 1900 conventional

management practices were found to beinadequate to meet demands from the

changing economic, social & technological

environment. A few pioneers examined causes

of inefficiency & experimented to try to find

more efficient methods and procedures for

control. From these basic experiments a system

of management thought developed which cameto be known as scientific management.


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The Human Relations Movement

Advances in the sciences of mankind, and of

behaviour as an individual and in groups, e.g.psychology, sociology, etc., have revealed a

number of factors which have helped in dealing

with business & industrial problems.

The basis of the human relations movement

was the integration of various disciplines such as

industrial psychology & sociology, applied

anthropology & social psychology, & wasconcerned with the human problems which

management encountered.


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Modern InfluencesThe United Kingdom was faced with many

complex problems during World War II.Operational research teams were set up,

composed of mathematicians, physicists &

other scientists, who pooled their knowledge to

solve problems. After the war these ideas were

applied to industrial problems which could not

be solved by conventional means. With the

development of the electronic computer, theseprocedures became formalized into a

management science school.


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Management Scienceschool.

The contribution of the quantitative

school was greatest in the activities of

planning & control. In the essence,

management science school, by its use

of computers and quantitative analysis,has made it possible to consider the

effect of a number of variables in an

organization which may otherwise havebeen overlooked.


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Management: A SCIENCE or an ART?It is in the formulation of principles that

the science of management can be

developed. A management principle distils &organizes knowledge that has been built upthrough experience & analysis. Managementis far from being an exact science at

presentbut, by understanding & applyingaccepted principles can be greatly improved.It is most probable that management willnever become wholly an exact science aspersonal judgment will always be needed tosupplement available knowledge; therefore,as a practice, management will always be anart.


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Management: a PROFESSION?The following main points seem relevant:

There must exist a body of principles, skills &

techniques and specialized knowledge. There must be formal methods of acquiring training

& experience.

An organization should be established which forms

ethical codes for the guidance & conduct ofmembers.

If the above standards are considered, thenmanagement cannot really be called a profession.There are no licenses for managers, nor is there anaccepted code of ethics, but there are tendenciestowards professionalization and these willundoubtedly increase.


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System Approach to Management

Systemis an organized combination of

parts which forms a complex entity,with interrelationships or interactions

between the parts & between the

system and the environment.

2 categories:

1. Deterministic where the behaviour can

be completely determined

2. Probabilistic

where the behaviour canonly be estimated within degrees of

likelihood.


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System Approach to ManagementManagement System encourages one to

consider the cutting acrossoftraditional boundaries of

responsibility between departments

in order to appreciate the objectives

of the whole organization. Distinctdemarcation lines between

purchasing, manufacturing,

engineering, marketing, etc., maybecome less distinct & a revision of

organization may be needed.


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System Approach to ManagementThe systems approach stresses theneed for more understanding in the

development of sophisticated problem-solving techniques, e.g. simulation,operations research & computerized

information systems. All these aim toimprove the control mechanisms oforganizational systems so that they

can plan for and react moreeffectively to changes in theenvironment.


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Sub-systemElements of a System:

A sensing system or mechanism, to find outhe situation & what is going on;

An information coding system, to ensurethat data are in usable from;

A physical processing system, requiring

two-way communication & feedback ofresults;

A regulating & control system, based uponactual output & measurement of deviations;

An information storage & retrieval system;

A goal-getting or policy-making system.


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Contingency Approach to Management

The approach is to identify the

conditions of a task (scientific schoolmanagement), managerial job(administrative management school)

and persons (human relations school) aparts of a complete managementsituation and attempt to integratethem all into a solution which is moreappropriate for a specificcircumstance.


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ELEMENTS of MANAGEMENT Planning referred to forecasting future

circumstances & requirements, decidingobjectives, making long- and short-termplans, determining policies to be followed &

the standards to be set. Organizing concerned with dividing work& allocating it among groups & persons anddetermining their responsibilities &

relations and the extent of theirdelegation.


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ELEMENTS of MANAGEMENT Directing involves guiding & supervising

subordinates. These subordinates mustbe oriented into the undertakings ways,guided towards improved performance &

motivated to work effectively towardsenterprise goals.

Controlling The activity involved

checking to see that plans have beencarried out & attending to any deviations.


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3 Basic types of Management Skills

1. Technical Skill ability to use tools,

procedures & techniques in a specialized area.2. Human Skill ability to work with, understand

& motivate people as individual or groups.

3. Conceptual Skill mental ability to coordinate

& integrate all of an organizations activities,especially in the long-term decisions affectingthe organization. It is needed to see theorganization as a whole & recognize how the

various factors in a situation are interrelatedso actions taken are in the best interests ifthe organization.


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Women in ManagementWomen obstacles in reaching higher levels on

merits:

There are not as many role models of career

development for women as there are for men.

Married & unmarried have to contend with the

career aspirations of their partner & maybedirectly involved in family responsibilities

Male co-workers may discriminate against

women. The policies & procedures of an organization may

be very unsupportive.


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EntrepreneurshipThe process of bringing

together creative andinnovative ideas & coupling

these with management &

organizational skills in orderto combine people, money &

resources to meet an

identified need and thereby

create wealth.


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Intrapreneurship

The term given tosomeone who has

innovative ideas and

transforms them to

profitable activities

within an organizationalenvironment

E E E


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TIME MANAGEMENTIn the age of scientific management,

methods were used to quantify the

relationship between the time spent and theoutput achieved. Managerial Time is soexpensivethat every organization mustbenefit by examining issues of time

management.Important Issues in Time Management:

Nature of job

Personal attributes of jobholder The context of a persons job


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Excellence in Management8 Characteristics of excellent enterprises:

Has a Bias for action

Learned about the needs of their customers.

Promoted entrepreneurship & managementautonomy

Obtained productivity by paying closeattention to the needs of their staff

Were encouraged by the philosophy of theirorganizations leaders

Concentrated on the business they knew best

Had an organization structure that was simplewith a lean staff

Were organized in a centralized ordecentralized manner, whichever wasappropriate


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Management for the future

An awareness of & ability to relate to the

economic, social, and political environment. An ability to manage in a turbulent

environment.

An ability to manage with complex

organizational structures. An ability to be innovative & initiate change.

An ability to manage & utilize increasingly

sophisticated information systems.

An ability to manage people with widely

different & changing values and expectations.

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