LESSON ONE : CONCEPT OF MANAGEMENT

Nature and scope of management

Management is the dynamic life giving element in every organization.It brings together
factors of production, enables societies to improve and increase the supply of goods and
services.

Definition of Management by various authors;-

According to McFarland, the process in which managers create, direct, maintain and
operate purposive organizations through systematic coordinated and cooperative
human efforts.

According to L.Londy it is principally the task of planning,coordinating, motivating

and controlling the effort of other towards specific objectives.

According to George. R. Terry opined that it is a distinct process consisting of activities

of planning, organizing, actuating, performed on the efforts of group members in order
to utilize available resources of the group human efforts, materials, machines and
methods in order to attain organization goals.

Principles of management are “diagnostic guides”each business situation is unique and

must be analysed on its own merit.The exact application of these principles will depend
upon its social economic, political and cultural factors in a particular organization.

Scope of Management

Management as a science;- can be defined as a representation of knowledge gathered by

observation and experimental critically tested systematized and brought under general
principles. As a science it refers to the application of scientific methods in making
decisions and evaluating different courses of actions. It involves obtaining of compete,
valid and reliable information in respect of the problem under consideration before
making a decision. Principles of management have been developed through continuous
observation and empirical verification. The existence of a systematized body of
knowledge in management principles. The principles are capable of universal
application. Management theory helps to examine and evaluate alternative courses of
action to resolve a given phenomena.

Management as an art;-the practical ability to apply theoretical knowledge and skills to

achieve desired results.It is concerned with creating of objects or events. It is essentially
an art cause;-
 Involves the use of know how i.e skills and knowledge
 Seeks to achieve concrete practical results
 Involves molding and welding the attitudes and behaviour of people at work.

Management as a profession;-field where training is intellectual in nature, that one

enters for the sake of others and in which financial reward is not considered as a

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measure of success. A profession maintains an experimental attitude towards
information and thus requires a search for new ideas.

Functional/Roles of Management
The process of management consists of several interrelated activities. These are no
universally acceptable classification of managerial functions.However, the following are
the main functions of management.

Planning; Determining objectives and selecting a course of action to achieve them.Its is

a mental process requiring the use of intellectual faculties foresight imagination and
sound judgement it consist of forecaster decision making and problem solving.
Planning may be long-term or short-term.Its is a pervasive function and managers at all
levels have to prepare plans. The process of planning involves;-determination of
objectives, forecasting and choice of a course of action,formulation of policies
programmers budgets e.t.c, laying down of procedures and standards of performance.

Organizing;- establishment of harmonious authority, responsibility, relationships

among the members and the enterprise.It is the function of creating structure of duties
and responsibilities.Organization structure serves as the framework within which
people can work together effectively for accomplishment of common objectives.
Organizing consists of;- determining and defining the activities required for the
achievement of planned goals, grouping the activities into logical and convenient units,
delegating authority to these positions and people, defining and fixing responsibility for
performance, assigning the duties and activities to specific positions and people &
establishing horizontal and vertical authority relationships throughout the organization.

Staffing;-involves managing organizational structure through proper and effective

selection. Appraisal and development of personnel to fit the roles designated in the
structure.Staffing consists of;- manpower planning, recruitment & selection, learning &
development, compensation and retention.

Directing;-it is the managerial function of guiding,supervising, motivating and leading

people towards the attainment of planned targets of performance.It initiates organized
actions and sets the whole organizational machinery into action. Directing embraces
the following ;-issuing orders and instructions, supervising people at work, motivating,
communication & leadership or influencing the behavior.

Controlling;- ensuring that the organization is moving in the desired direction and that
progress is being made towards the achievement of goals. Controlling involves the
following;-establishing standards for measuring work performance, measuring of actual
performance and comparing it with the standards, finding variances between the two
(performance standards and actual performance) & taking corrective action for
deviations so as to ensure attainment of objectives.

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Management levels
The different levels of management are explained as below.
Top management;-the ultimate source of management and it’s the accountable for
overall management to the shareholders of the company. Functions of top management
include;-
 To appoint departmental and other key executives.
 To analyze,evaluate and deal with the environmental forces
 To establish overall long-term goals and policies of the company including the
master budget.
 To represent the company to the outside world.e.g trade associations.
 To exercise overall review and control on the company’s operation.
 To coordinate the activities and efforts of different departments.

Middle management; consists of the deputy-heads of departments and sectional

officers.They serve as link between top management and operating management.
Functions of middle management;-
 To interpret and explain the policies framed by top and intermediate
managements
 To compile and issue detailed instructions regarding operations
 To co-operate among themselves so as to integrate various parts of a
department.
 To motivate supervisory personnel to work for organizational goals.
 To develop and train supervisory and operative functions/levels.

Lower/Supervisory/Operation Management;-The lowest level of management serves as

the link between management and workers. Functions of supervisory management;-
 To plan day to day production with the goals laid down by higher authorities
 To assign jobs to workers and to maintain personal contact with them;
 To arrange material and tools to maintain machinery;
 To make identify and make arrangements for staff training and development.
 To maintain discipline and good human relations among workers.
 To report feedback information and workers problems this cannot be solved at the
supervisory.

Managerial Skills
A skill is the mentality to do perform a certain specific function to the best of your
ability.Managerial skills are the mixture of talents that managers should possess in order
to perform their roles efficiently. These skills make managers unique and different from
their subordinates.Basically these are the four managerial skills;-

 Conceptual skills; the mental ability that enables managers to build the
business in a holistic manner.This ability enables them to see relationships
with both the internal and external environment.

 Technical skills;-the abilities to use knowledge and expertise of a particular

discipline to achieve the ends of goals. They are as a result of training and
practice.

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  Diagnostic skills;-these are skills that enable mangers to define and understand
situations and circumstances.They assist managers to interpret situations at
hand and take corrective action.

 Interpersonal skills/Human skills;-this the ability to work effectively with

others and build cooperative group relationships to achieve organizational
goals.They entail communication and motivation.These skills enable managers
to present ones own position in reasonable way and assist managers in dealing
with conflicts and resistance.

Managerial Roles
Henry Mintzberg identified ten managerial roles which he grouped into three categories
namely;-

Inter personal roles;

 Figure head;-managers carry out a variety of social,legal and ceremonial
duties e.g signing of certain documents, receiving visitors e.t.c
 Leader;-relates with subordinates motivates and develops them.He is
accountable of the activities of subordinates.He/She establishes a network
of contacts with other organizations, customers,suppliers e.t.c
 Liaison roles;-serves as a liaison between the organization and the external
environment.He/she establishes a network of contacts with other
organization, customers, suppliers e.t.c

Informational roles;-
 Monitor role/Nerve centre;-seeks information inside and outside the
organization.He attends meetings with subordinates.

 Disseminator role;-passes information to subordinates.He may conduct staff

meetings,send memos to subordinates and meets them informally.

 Spokesperson role;-acts as the representative of the organization.He gives

information to people outside the organization about its performance and
policies.

Decisional role;-
 Entrepreneur role;-the manager takes initiative for bring change in
organization.
 Disturbance role:-the manager deals with problems that may arise when
organization operations break down.

Study Questions
Explain at least five qualities of a good manager