MANAGEMENT

“Management is a process or series of activities that

gives direction to an enterprise’s resources so that its
objectives can be achieved as productively as possible
in the environment in which it operates.” Smit P.J and
G.J de J Cronje (1997)
 MANAGEMENT

• “Management is the process of coordinating

work activities so that they are completed
efficiently and effectively with and through
other people.” Robbins S.P and M Coulter
(2003).
• There are four basic management functions
namely planning, organizing, leading and
controlling.
 MANAGEMENT SKILLS
• CONCEPTUAL: To be able to see the “big
picture” of the situation. Ability to arrive at
ideas create a vision and plan for the future
• TECHNICAL: Posses specific knowledge or have
a specialised expertise
• HUMAN: To be able to work well with others
both individually or in a group setting
 PLANNING
• PLANNING:
• Definition: A process that involves defining
the organizations objectives or goals,
establishing an overall strategy for achieving
those goals, and developing those goals, and
developing a comprehensive hierarchy of
plans to integrate and coordinate activities.
 PLANNING
• DEFINITION: This is the management activity
that determines the enterprise’s mission and
goals. It includes identifying ways of attaining
the goals as well as the resources needed for
each task. It entails determining the future
position of the enterprise and guidelines or
plans needed to reach that position.
 PLANNING
• TYPES
1. Informal planning: Nothing is written down,
there is little or no sharing of objectives with
others in the organisation.
2. Formal planning: Specific objectives covering
a period are defined
 PLANNING
• Purpose of planning
1. Gives direction
2. Reduces impact of change
3. Minimises waste and redundancy
4. Sets standards used in controlling
 PLANNING
• TYPES OF PLANS
Breadth Time frame Specificity Frequency of
use
Strategic Long term Directional Single use
Operational Short term Specific Standing
 PLANNING
• Strategic plan: Plans that apply to the entire
organisation establish organisation overall
objectives and position organisation in terms of
its environment – cover extended time period
3years or more. Done by top executives
• Operational plans: are plans that specify detail
on how objectives are to be achieved over
shorter periods- monthly, weekly, daily. Done by
managers.
• Long term plans: time frame beyond 3 years
• Short term plans: cover one year and less
 PLANNING
• Specific plans: have clearly defined objectives
eg increase sales volume by 20% over 3
months period
• Directional plans: identify general guidelines
increase sales volume by 10-20% over 3
months period
 STRATEGIC MANAGEMENT
• VISION is the overall conception of what the
organization is trying to become. The direction
in which the organization is headed almost
like a dream.
• A mission statement is an enduring
declaration of:
1. A company’s purpose for which it is set
 STRATEGIC MANAGEMENT
MISSION cont
2. Provides elements that assist management’s targets and the way it
should operate, and some of these elements are as follows:
• Beliefs and values of the organisation that is what it stands for
• Targets customers and products and services it produces
• Reason for existence
• Customers perceived values
• Internal competences
• Key market segments
• Key stakeholders
• Mission statement if well crafted should be a source of inspiration
and strategic direction set up. It should communicate strategic core
competences
 STRATEGIC MANAGEMENT
• Objectives are the desired end result more
immediate and concrete than the vision
• Objectives convert vision into specific
performance targets
• Objectives have to be smart
Specific clear message as to what exactly is to be
accomplished
Objectives have to be measureable
 STRATEGIC MANAGEMENT
• Objectives have to be appropriate that is
consistent with the vision
• Realistic that is have to be achievable
• Timely that is time bound that is you need
time frame to accomplish the objective
 LEVELS OF STRATEGY
1. CORPORATE-LEVEL STRATEGY
If an organisation is in more than one type of business,
it will need a corporate level strategy. Seeks to
determine what businesses a corporation should be
in.
2. BUSINESS-LEVEL STRATEGY
Seeks to determine how corporation should compete
in each of its businesses
Strategic business unit (SBU) represents a single
business or grouping of related businesses Each SBU
has its own unique mission, competitors and strategy.
 LEVELS OF STRATEGY
3. FUNCTIONAL-LEVEL STRATEGY
Seek to determine how to support the
business level strategy. Functional
departments such as manufacturing,
marketing, human resource, research and
development and finance, strategies need to
support business level strategies.
 STRATEGIC MANAGEMENT PROCESS
Is an eight step process that encompasses
strategic planning, implementation and
evaluation. The first six steps describe the
planning, then implementation and evaluation
Step1: Identify the organisation's current
Mission, Objectives and Strategies.
Step 2: Analyse the external environment.
Step 3: Identify opportunities and threats
 STRATEGIC MANAGEMENT PROCESS
Step 4: Analysing the organisations resources
Step 5: Identifying strengths and weaknesses
Step 6: Formulating strategies
Step 7: Implementing strategies
Step 8: Evaluating results
 ORGANIZING

• This is the second step in the management

process. Once the goals and plans have been
determined, management has to allocate the
organisation’s human and physical resources to
relevant departments. Duties have to be defined
and procedures fixed to attain the objectives.
Organizing therefore entails developing an
organizational structure to indicate how
personnel and materials should be employed to
achieve the goals.
 PURPOSE OF ORGANIZING

1. Divides work to be done into specific jobs and

departments
2. Assigns tasks and responsibilities associated
with individual jobs.
3. Coordinates diverse organizational tasks
4. Cluster jobs into units
5. Establishes relationship among individuals,
groups and departments
6. Establishes formal lines of authority
7. Allocates and deploys organisational resources
 ORGANIZING
• An organisational structure is a formal framework in
which jobs tasks are divided, grouped and coordinated
• Organisational design is when managers develop or
change organisation’s structure. A process that involves
decision about six key elements
1. Work specialisation
2. Departmentalization
3. Chain of command
4. Span of control
5. Centralization and Decentralization
6. Formalization
 WORK SPECILISATION
This is when jobs are broken down into simple
routine and well defined tasks
e.g one person could paint a door and another
person fixes the door
It has an advantage that work may be
completed quickly , effectively and efficiently .
This saves time and also the employee skills of
performing his job successfully increase through
repetition
 WORK SPECIALISATION
The disadvantage is that when employees do
one task they become bored and tired .

Also the scope of the employee`s growth will

be limited
 DEPARTMENTALISATION
• It is the basis by which jobs are grouped together. For
instance every organisation has its own specific way of
classifying and grouping work activities
• There are five common forms of departmentalisation;
i. Functional departmentalisation
ii. Product departmentalisation
iii. Geographical departmentalisation
iv. Process departmentalisation
v. Customer departmentalisation
 CENTRALISATION AND
DECENTRALISATION
Centralisation
This refers to a relatively high degree of
concentration of decision making of top
managers at the head office e.g. departmental
stores have this characteristics.
Decentralisation
This refers to dispersal or diffusion of decision
making authority to lower level management
in an organisation.
 Variables used for
centralising/decentralising
 The size of the organisation.
 Diversity of product lines.
 Geographical location of the business.
 Communication frequency and facilities.
 Nature of growth.
 CHAIN OF COMMAND
• An order which authority and power in an
organisation is used and delegated from top
management to lower management.
o The unity of command states that every
employee should report to only one manager
instructions from two or more superiors may
result in conflicts , this has a negative effect on
the production of an organisation
 SPAN OF CONTROL
This refers to the number of subordinates who
report directly to a given manager
• A manager with a broad span of control that is
a large number of subordinates under his
supervision maybe over extending him/herself
and hence difficulties in coordination delaying
decision making
• A narrow span of control can give
subordinates close supervision .
 FORMALISATION
Is the extent to which employee behaviour is
guided by rules and procedures.
• The organisations with high formalisation have
strict rules and regulations
• The low formalising organisations have very
few written rules and procedures and are less
stable
 LEADING
• Leading – This refers to giving orders to the human
resources of the enterprise and motivating them in
such a way that their actions are in accordance with
the goals and plans formulated. Taking the lead,
motivating and influencing personnel as well as
communication with and among personnel has a
profound effect on the climate prevailing in an
enterprise.
• Leaders: Persons who are able to influence others and
possess managerial authority.
• Leadership is the ability to influence a group towards
the achievement of goals.
 CONTEMPORARY THEORIES OF
LEADERSHIP
1. Fiedler’s
2. Path goal
3. Leader participation
• FIEDLER CONTINGENCY MODEL
• The theory that effective groups depend on
proper match between a leader’s style of
interaction with subordinates and the degree to
which the situation gives control and influence
to the leader.
 THE FIEDLER MODEL
• The research uncovered three contingency dimensions that
defined the key situational factors for determining leader
effectiveness:
1. Leader member relationship: the degree of confidence,
trust and respect subordinates had for their leader, rated
as either good or poor
2. Task structure: the degree to which the job assignments
were formalized and procedurized, rated as either high or
low
3. Position power: degree of influence a leader had over
power based activities such as hiring, firing, discipline,
promotions, salary increase rated as either strong or weak
 PATH-GOAL THEORY
• Developed by Robert House
• The leader’s job is to assist his or her follower’s in
attaining their goals and to provide the direction
or support needed to ensure that their goals are
compatible with the overall objectives of the
group or organisation. Leader’s behaviour is
motivational making satisfaction of subordinates’
need and provide coaching , guidance, support
and rewards that are necessary.
 PATH-GOAL THEORY
• House identified four leadership behaviour:
1. Directive leadership: let subordinates know what’s
expected of them. Schedules work to be done, and give
specific guidance as to how to accomplish tasks
2. Supportive leader: is friendly and shows concerns for the
needs of subordinates.
3. Participative leader: consults with subordinates and uses
their suggestions before making decision.
4. Achievement oriented leader: sets challenging goals and
expects subordinates to perform at their highest level
NB: In contrast to Feider, House assumes that leaders are
flexible. Leaders can display any of these leadership style
depending on the situation
 LEADER PARTICIPATION MODEL
• Developed by Victor Vroom and Phillip Yetton
which related leadership behaviour and
participation to decision making. Decision
making is determined by the different type of
situation giving five leadership styles
 LEADER PARTICIPATION MODEL
Autocratic 1 You solve problems and make a decision yourself using
information available to you at that time

Autocratic 11 You obtain necessary information from subordinates and then

decide on the problem yourself. The role of subordinates is to
provide information to you rather than generating or evaluating
alternative solution
Consultative 1 You share problem with relevant subordinate individually, getting
their ideas and suggestions without bring them together as a group.
Decision may not reflect your subordinates influence
Consultative 11 You share problem with your subordinates as a group, collectively
getting their ideas and suggestions. Then when you make decision,
which may or may not reflect your subordinates’ influence
Group 11 You share problem with your subordinates as a group. Together you
generate and evaluate alternatives and attempt to reach an
agreement on a solution
 Leadership styles
style Main feature Draw back Possible
application
Autocratic  leader takes all  demotivates • defence forces
decisions staff who want and police
■ gives little to contribute and where quick
information to staff accept decisions are
■ supervises responsibility needed and the
workers closely ■ decisions do not scope for
■ only one-way benefit from discussion must
communication staff input be limited
■ workers only ■ times of crisis
given limited when decisive
information about action might be
the business needed to limit
damage to the
business or
danger to others
 Leadership styles
style Main feature Draw back Possible
application
DemocraticDemocr participation consultation with most likely to be
atic encouraged staff can be useful in
■ two-way time-consuming businesses that
communication ■ on occasions, expect workers
used, quick to contribute fully
which allows decisionmaking to the
feedback from will be required production and
staff ■ level of decision-making
■ workers given involvement – processes, thereby
information some satisfying
about the business issues might be too their higher-order
to allow full sensitive needs
staff involvement (e.g. job losses) or ■ an experienced
too secret and flexible
(e.g. development workforce will be
of new likely to
 Leadership styles
Style Main feature Draw back Possible
application
Laissez-faire managers delegate workers may not when managers are
virtually all appreciate the too busy
authority and lack of structure (or too lazy) to
decision-making and direction intervene
powers in their work – this ■ may be
■ very broad could lead appropriate in
criteria or limits to a loss of security research
might be ■ the lack of institutions where
established for the feedback – as experts are more
staff to work within managers will not likely to
be closely arrive at solutions
monitoring when not
progress – may be constrained by
demotivating narrow rules or
management
controls
style
Leadership
Main feature
styles
Drawback Possible
application
Paternalistic managers do what some workers will used by managers
they think is be who
best for the dissatisfied with the have a genuine
workers apparent concern for
■ some attempts to workers’ interests,
consultation might consult, while but feel that
take not having any real ‘managers know
place, but the final power or best’ in the
decisions influence end – when
are taken by the workers are young
managers – or inexperienced
there is no true this might be
participation in an appropriate
decision-making style to employ
■ managers want
workers to be
happy in their jobs
 Case study
Disaster at the bakery
The fire at the bakery was a disaster for T&S Provisions Ltd. Eli Tarranto, the chief executive and
main shareholder, had been the first one to be called by the fire brigade officer at 3am. ‘The
whole building is up in flames – we have not been able to save anything,’ he had shouted down
the phone. The next day, as Eli waited for his staff to turn up for work outside the burnt-out shell
of his bakery, a plan was beginning to form in his head. He had already contacted both the owner
of a small competing bakery, who was actually a very good friend, and the commercial estate
agent from whom he had bought the land for the bakery four years ago. The owner of the bakery
agreed to allow Eli to use one of his spare ovens if he sent his own workers to operate it. This
would give him about 50% of his normal capacity. The commercial estate agent suggested that Eli
rent, for a period of three months, an empty depot on the other side of town. He believed that it
would take around two weeks to have this equipped as a temporary bakery. When the staff
started to arrive, Eli gave them all clear instructions. They were shocked by the state of the old
building but they seemed willing to help in this time of crisis. Six of them were despatched to his
friend’s bakery to start organising production there.
 Case study
Two were sent to the estate agent to pick up keys for the depot and had
instructions to start cleaning the premises. The remaining three workers were
to help Eli salvage what he could from the office records of the burnt-out
building. Before this could start, Eli telephoned all of his major customers – he
did not leave it to his sales manager – to explain the extent of the problem
and to promise that some production would be back on stream just as soon
as possible. He then contacted suppliers to inform them of the disaster, to
reduce order quantities and to give them the new, temporary address for
Deliveries
[17 marks, 25 minutes]
1 Identify the management roles that Eli seems to have demonstrated in this
case. [4]
2 What leadership style did Eli seem to be employing in the case? Explain
your answer. [3]
3 Discuss whether this is the most appropriate style of leadership to apply in
all situations. [10]
 CONTROLLING
• – Managers should constantly be making sure
that the enterprise is on the right track in the
attainment of its goals. This is done through
controlling. The aim of control is therefore to
check that performance and action conform to
plans to attain predetermined goals. Control
also enables management to identify
subordinates' weakness
 TYPES OF CONTROL
1. Concurrent control
2. Feedback control
3. Feed forward control
 CONCURRENT CONTROL
• Definition:
– It takes place while plans are carried out
and it is the heart of any control system.
• Characteristic:
– Takes place while plans are being carried
out
– Directing , monitoring and fine-tuning
activities
 FEEDBACK CONTROL
• Feedback control implies that performance
data is gathered and analyzed and the results
returned to someone (or something) in the
process to make corrections.
 FEED FORWARD CONTROL
• Definition:
– It takes place prior to implementation of
plans eg raw material testing before
product manufacturing.
COMPARISON OF FEEDBACK AND
CONCURRENT CONTROL
Concurrent
Concurrent control maintains
high quality of standards and
outputs
Concurrent control minimizes
the loss of resources
Concurrent control protects
the brand name and loyalty
Concurrent control cultivates
a good culture in employees
Concurrent improves the
output
Feedback
Feedback control can not
maintain the quality of
standards
Feedback control waste the
resources
Feedback damages the brand
name and loyalty
Feedback control a culture of
relaxation
Feedback control cannot
improve the output
COMPARISON OF FEEDBACK AND
CONCURRENT CONTROL
CONCURRENT FEEDBACK
Concurrent can not provides Feedback control provides
information on how effective information of how effective
the planning was the planning was

Concurrent control is Feedback control is cheaper

expensive

Concurrent control can not Feedback control is faster (

save time time saving)

Concurrent is not easy to Feedback control is easy to

accept accept
COMPARISON OF FEEDBACK AND
CONCURRENT CONTROL
CONCURRENT
Concurrent can control the
process in time
Concurrent managers can
quickly identify the problem
Concurrent protects the
brand name
FEEDBACK
Feedback control can not
control the process in time
Feedback control managers
can not quickly identify the
problem and eliminate it
Feedback control damages the
brand name