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