PRINCIPLES AND PRACTICES OF MANAGEMENT

KNEC NOTES
TOPIC 1

INTRODUCTION

Specific Objectives

By the end of this sub-module unit, the trainee should be able to:

1. Explain the nature and scope of management

2. Identify various levels of management
3. Explain various levels of management
4. Explain the managerial roles
5. Highlight qualities of an effective manager

Management is an integrating force or agency consisting of some basic functions for

accomplishing the objectives of an organization. Thus management is the dynamic life giving
element in every organization. So bringing together factors of production, management
enables societies to get better and increase the supply of goods and services.

DEFINITIONS OF MANAGEMENT

1. According to McFarland

Management is a process which managers create, direct, maintain and operate purposive
organizations through systematic coordinated and cooperative human efforts.

2. L. Londy

Management is principally the task of planning, coordinating, motivating, and controlling the
effort of others towards specific objectives.

3. George R Terry

Management 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.

4. According to Mary Parker Follet, management is defined as the art of getting things done
through people in formally organized.

These definitions clearly identify four functions of management. However modern

management classifies managerial function into five.

CHARACTERISTICS/ FEATURES OF MANAGEMENT

Management has the following salient features:

 Management is a process. This refers to the process of getting thing done working
with people to accomplish
 Management is goal oriented thus aims at achieving organizational goals/objectives
 Management is a group activity. It’s concerned with group efforts and not
individual/efforts
  Management is an economic resource as it aims at reaping rich results in economic
terms
 Principles of management have universal application. Apply more or less in every
situation.
 Management is a system of authority. Managers at different levels have varying
degree of
 Principles of management are dynamic and not static
 Management is integrative; the essence of management is to integrate human and
other resources to achieve desired
 Management is both science and an art. Management has an organized body of
knowledge consisting of well-defined concepts, principles and techniques that have a
wide application and thus a science. The application of this concepts principles and
techniques requires skills thus management is also considered as an art.

PRINCIPLES OF MANAGEMENT

A principle is a fundamental statement of truth that provides a guide to thought and action. It
establishes a cause and effect relationship between two more variables. The principles of
management lay down guidelines for improving management practice.

Variable this is something that can change affect the results of something.

Principles of management are “diagnostic guides” each business situation is unique and must
be analyzed on its own merit.

The exact application of these principles will depend upon its social economic, political and
cultural factors in a particular organization.

NEED/REASONS FOR PRINCIPLES OF MANAGEMENT

1. To increase efficiency – it enable a manager to take more realistic view of

organizational problems and their solutions. It avoids the need for trial and error
methods and improves the quality of managerial
2. To crystallize the nature of management job – it helps in analyzing the management
job and in defining the exact scope of management process. It provides a framework
for training and education in
3. To improve research in management – it serves as a focal point for useful research in
group dynamics, both to ascertain their validity and to improve their applicability.
4. To attain social goals– it enables more efficient utilization of human and material
resources. In this way, management provides social satisfaction and improves the
quality of life.

Criticism of the principles of management

1. They are based on unrealistic premises

2. They represent common sense and are too obvious

Many of them are contradicting e.g. the principle of unity of command suggest a single boss
for every employee while the principle of specialization advocates that specialists should
guide subordinates in their respective.
Nature/ characteristic of management principles
1. Universality of principles– they can be applied in different types of organization e.g.
business, government, educational, military etc.
2. Dynamism – management principles are flexible guides rather than hard and fast
rules. They are dynamic rather than
3. Static, diagnostic rather than determinative. Two management situations are seldom
a like in all respects an therefore, management principles have to be modified with
changes in the environment of the organization
4. Human limitation– management is an inexact social science because it deals with
human behavior which is a very complex and unpredictable and in order to
understand and influence it, various principles developed in other fields and applied
today in.
5. Relativity– management principles are relative rather than absolute. Therefore these
should be applied according to the
Need of the organization and demands of the situation.

MANAGEMENT AS A SCIENCE OR AN ART OR A PROFESSION

There are different viewpoints as to whether management should be regarded as a science or

an art or both. As a matter of fact, the management is an art as well as a science. This is
explained as follows:

A science may be defined as “representing knowledge gathered observation and experiment

critically tested, systematized and brought under general principles”

It means that science is an organized or systematized body of theoretical knowledge

pertaining to a particular field of enquiry. Such systematized body of knowledge contains
concepts, principles and theories, which help to explain events and to predict the outcome of
specific actions. These principles are capable of universal application.

Management as a science refers to the application of scientific methods in making decisions

and evaluating different courses of actions. It involves obtaining of complete, valid and
reliable information in respect of the problem under consideration before making a decision.

Management is a science because of the following reasons:-

1. The principles of management have been developed through continuous observation

and empirical verification
2. There is a systematized body of knowledge in management principles are now
available in every function of management
3. and these principles help to improve managerial
4. The principles of management are capable of universal application
5. Management theory helps to examine and evaluate alternative courses of action to
resolve a given

MANAGEMENT AS AN ART

Management is essentially an art because of the following reasons:-

1. The process of management involves the use of know how i.e. skills and knowledge
2. Management seeks to achieve concrete practical results i.e. profit, growth etc.
 3. Like an art, management is creative it brings out new solutions and makes resources
productive. Management is creative
4. since it involves molding and welding the attitudes and behavior of people at work for
the accomplishment of specific
5. goals in a changing environmental
6. Good management is efficient and the success of a manager is measured the effective
realization of organized

CONCLUSIONS

Management is both an art as well as a science. Essentially managing is the art of doing and
management is the body of knowledge which underlies the art. It must however be noted that
science and art are complementary to each other. Science without art is sterile and art without
science is blind.

The art and science of management go hand in hand. The art of management is guided the
science of management which in turn gets nourishment from the practice (art) of
management.

MANAGEMENT AS A PROFESSION

A profession can be defined as:

It is a field where training is intellectual in nature a field in which one enters for the sake of
others and in which financial reward is not considered as a measure of success

A profession is a field which is supposed to possess a well-defined body of knowledge one

which is leaned intellectual and organized one with entry restricted examination or education
and one which is concerned primarily with service to others above self- reward

Management is a profession since it meets the first criteria the body of knowledge
requirement this is true from the vocational understanding of the function of business the
general can discipline found in typical schools of business, the graduate programs where
functions, organizations, social institutions social responsibilities and policy are emphasized

However management falls the test of professionalism on another criteria. Anybody can label
himself a manager and apply it to the operation of business. Managers are never self- made
instead they are the product of the classroom and research. Education and training are
regarded socially as vital to managerial progression and success and typically the educated
managers are the ones to whom positions of power and real responsibility are given.

The question of whether mgt is a profession is complex because mgt is a broad subject parts
of the subject do have professional characteristics and others do not

The following criteria of a profession will help to identify those parts which may be
considered to be professional:

 A profession is based on a proven systematic body of knowledge and thus requires

intellectual training
 A profession maintains an experimental attitude towards information and thus
requires a search for new ideas
  A profession emphasizes service to other and usually develops a code of ethics that
requires that financial return should not be the only
 Entrance into a profession is usually restricted standards established an association
that requires its members be accepted a group composed with people common
training.

FUNCTIONAL AND ROLE OF MANAGEMENT

The process of management consists of several interrelated activities. These activities are
known as the functions of management. There is no universally acceptable classification of
managerial functions. However, the following are main functions of management.

1. PLANNING

It is the primary function of mgt. it involves determining the objectives and selecting a course
of action to achieve them it implies looking ahead and deciding in advance what is to be done
when and where it is to be done, how and whom it is done.

It is a mental process requiring the use of intellectual faculties, Foresight imagination and
sound judgment it consist of forecaster decision making and problem solving.

A plan is a predetermined future course of action it is today design for tomorrow and an
outline of steps to be taken in future.

Planning may be long-term or short term. It is a pervasive function and managers at all levels
have to prepare plans. It is a continuous or an ongoing process. It enables us to do things in
an orderly and efficient manner. It is helpful in achieving the goals and facing uncertainly and
change.

2. ORGANIZING

It is the process of establishing harmonious authority – responsibility, relationships among

the members and the enterprise.

It is the function of creating a structure of duties and responsibilities. The organization

structure serves as the framework within which people can work together effectively for
accomplishment of common objectives. It is an important element of management because it
is through organizing that a manager brings together the material and human resources
required for the achievement of goals.

The process of organizing consists of the following steps:

1. Determining and defining the activities required for the achievement of planned goals
2. Grouping the activities into logical and convenient units
3. Delegating authority to these positions and people
4. Defining and fixing responsibility for performance

3. STAFFING

It is the process of filling all positions in the organization with adequate and qualified
personnel.
According to Koonts and O. Donnel the management function of 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:

1. Manpower
2. Recruitment
3. Selection
4. Training
5. Compensation
6. Integration and maintenance of employees

4. DIRECTING

It is the managerial function of guiding, supervising, motivating and leading people towards
the attainment of planned targets of performance. It is concerned with execution of plans and
policies. It initiates organized actions and sets the whole organizational machinery into
action. It is therefore, the life spark of an organization.

Directing embraces the following activities:

i. Issuing orders and instructions

ii. Motivating i.e. creating willingness to work for certain
iii. Communication i.e. establishing understanding with employees regarding plans
iv. Leadership or influencing the behavior of their staff.

5. CONTROLLING

It is the process of ensuring that the organization is moving in the desired direction and that
progress is being made towards the achievement of goals.

The process of controlling involves the following steps:

1. Establishing standards for measuring work performance

2. Measurement of actual performance and comparing it with the standards
3. Finding variances between the two and the reasons thereof
4. Taking corrective action for deviations so as to ensure attainment of objectives

LEVELS OF MANAGEMENT

The different levels of management are explained as below:

1. Top management (strategic level management)

2. Middle level management (tactical level management)
3. Lower level management (supervisory or operating management)
1. TOP MANAGEMENT

In case of a company it consist of the BOD and Chief Executives such as general managers,
MDs, president, chairman cum M.D

It is the ultimate source of management and it’s the accountable for overall management to
the shareholders of the company.
Main functions of top management

a. To analyze, evaluate and deal with the environmental forces

b. To establish overall long term goals and policies of the company including the
master budget
c. To represent the company to the outside world, e.g. trade associations,
government, trade
d. To exercise overall review and control on the company’s operation
e. To coordinate the activities and efforts of different departments
f. To appoint departmental and other key executives.

2. MIDDLE MANAGEMENT

This level of management consist of deputy heads of departments and sectional officers such
as plant manager, are sales manager, or branch manager, chief accountants, purchase officers
etc. These officers serve as a link between top management and operating management.

Functions of middle management

a) To interpret and explain the policies framed top and intermediate managements
b) To compile and issue detailed instructions regarding operations
c) To co-operate among themselves so as to integrate various parts of a division or a
department.
d) To motivate supervisory personnel to work for organizational goals
e) To develop and train supervisory and operative

3. LOWER /SUPERVISORY/ OPERATING MANAGEMENT

It is the lowest level of management. It consist of plant superintendent foremen and front line
supervisors, sales officers, accounts officers etc. It serves as the link between management
and workers.

Functions of supervisory management

1. To plan day to day production with the goals laid down higher authorities
2. To assign jobs to workers and to make arrangements for their training and
development
3. To supervise and control workers and to maintain personal contact with them
4. To arrange material and tools and to maintain machinery
5. To advise and assist workers explaining work procedures, solving their problems etc.
MANAGEGERIAL SKILLS

A skill is the ability to do something. Hence 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 there are four managerial skills namely:-

1. Conceptual Skills

These are mental abilities that enable managers to build their businesses in a wholistic
manner. They enable managers to think in an abstract manner. It enables them to see
relationships with both the internal and external environment.

These skills increase in importance as we move up the managerial levels.

2. Technical Skills

These are 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.

Since first level managers/supervisors spend most of their time with operating employees,
they must have a good understanding of the work the subordinates perform if they are to
supervise them.

3. Technical Skills

These are skills that enable managers define and understand situations and circumstances.
They assist managers to interpret situations at hand take corrective action. They increase in
importance as we move up the managerial hierarchy.

4. Interpersonal Skills/Human Skills

These are the abilities to work effectively with others and build cooperative group
relationships to achieve organizational goals. They entail communication and motivation.

They enable managers to understand someone else position, to present one’s own position in
reasonable way and assist managers in dealing with conflicts and resistance.

These skills have equal importance at all levels.

MANAGERIAL ROLES BYHENRYMINTZBERG

Henry Mintzberg identified ten managerial roles which he grouped into three categories
namely:-

a) Inter personal roles

b) Informational roles
c) Decisional roles
Interpersonal roles

 Figure head

In this role the manager plays a symbolic role. He carries out a variety of social, legal and
ceremonial duties e.g. signing of certain documents, receiving visitors’ etc.

 Leader

The manager relates with subordinate motivates and develops them. He is accountable of the
activities of subordinates.

He/she hires, trains and develops the subordinates.

 Liaison roles

The manager serves as a liaison between the organization and the external environment. Thus
he establishes a network of contacts with other organization, customers, suppliers etc.

Informative roles

 Monitor role/Nerve centre

The managers seek information inside and outside the organization. He attends meetings with
subordinates.

 Disseminator Role

In this role the manager passes information to subordinates. He may conduct staff meetings,
send memorandums to subordinates and meets them informally. He ensures that they have
necessary information to carry out their tasks efficiently.

 Spokesperson Role

He acts as the representative of the organization. He gives information to people outside the
organization about its performance and policies. E.g. speaks to the community and in
professional meetings, prepare advertisements etc.

Decisional Roles

 Entrepreneur Role

The manager takes initiative for bringing change in his organization. He performs the
initiative and informative role in the organization.

 Disturbance Role

The manager deals with problems that arise when organization operations breaks down.
He/she is responsible for the corrective action.

 Resource allocator role

The manager decides who will get what in the organization. He schedules every activity of
the organization and ensures a balance in operations allocations of people, money etc.
  Negotiator Role

The manager is responsible for representing the organization is various important

negotiations with other parties.

N/B Mintzberg emphasizes that these ten roles are inseparable and should be viewed as
an integrated whole. E.g. status as manifested in interpersonal roles, brings information
to the mangers, and it’s this information that will enable manager perform the
decisional role effectively.

QUALITIES OF A MANAGER

The basic job of a manager is the effective utilization of human and other resources to
achieve organizational objectives. He lays down the goals and directs the activities of the
group toward effective utilization of resources so as to achieve organizational goals. The
manager manages work, subordinates and other managers and materials.

In order for a manager to succeed he must possess the following qualities.

1. Education –He should be well educated. He should possess both general education
and specific education in business management/administration.
2. Training -managerial skills are acquired through
3. Intelligence –manager should have an ability to think scientifically ad analyze
problems
4. Leadership –Manager should be able to inspire and channel the efforts of people
toward attainment of organizational goals. (Motivate)
5. Foresight –The manager should be able to foresee problems which might face the
business and take necessary measures
6. Maturity – a good manager should be emotionally mature and have a balanced
temperament. He should have high frustration
7. Technical knowledge- a manager should possess peculiar knowledge to the technique
of production being used in the enterprise
8. Human relations attitude. A manager should be able to maintain good working
relationship with others. He should treat workers
9. Self-confidence. A manger should have confidence and take initiative on decision
made. He should not fear carrying out his.

EVALUATION

1. Define the term

2. Describe the skills that managers should possess in order to be effective
 Explain the ten managerial roles as propounded Henry
3. Describe the essential qualities of a manager