Allama Iqbal Open

University
(Department of Business
Administration)

2–1
Management Theory And Practice

REVISION

2–2
 Management Theory And Practice
• What is Management?

– Management involves coordinating and overseeing

the work activities of others so that their activities
are completed efficiently and effectively.
– The process of dealing with or controlling things or
people. ( Dictionary)
– Management can be defined as the process of
administering and controlling the affairs of the
3
organisation.
Management Theory And Practice
• What is Management?
– Managerial Concerns
• Efficiency
– “Doing things right”
» Getting the most output for
the least inputs
• Effectiveness
– “Doing the right things”
» Attaining organizational goals 1–4
Management Theory And Practice
• What is Management?
– Managerial Concerns

1–5
Management Theory And Practice
• Who are Managers?
– Manager
• Someone who coordinates and oversees the
work of other people so that organizational
goals can be accomplished.

1–6
Management Theory And Practice
• Who are Managers?
– Classifying Managers
• First-line Managers
Top
– Individuals who manage the work of non-
Man
managerial employees.
• Middle Managersager
– Individuals whos manage the work of first-line
Middle Managers
managers.
• Top Managers
– Individuals whoManagers
First Line are responsible for making
organization-wide decisions and establishing
plans and goals that affect the entire
organization. 1–7
 Management Theory And Practice
• Who are Managers?

– What Managers Do?

Planning

• Functions Manager’s Perform

– Planning
Function
» Defining
Controlling Managers
goals, Organising
establishing
Perform
strategies to
achieve goals, developing plans to
integrate and coordinate activities.
Leading
1–8
 Management Theory And Practice
• Who are Managers?
– What Managers Do?
• Functions Manager’s Perform
– Organizing
» Arranging and structuring work to
accomplish organizational goals.

– Leading
» Working with and through people to
accomplish goals.
1–9
 Management Theory And Practice
• Who are Managers?

– What Managers Do?

• Functions Manager’s Perform

– Controlling

» Monitoring, comparing, and correcting

work

1–10
Management Theory And Practice
Decisions in the Management Functions

6–11
Management Theory And Practice
Decision Making
• Decision
 Making a choice from two or more alternatives.
• The Decision-Making Process
 Identifying a problem and decision criteria and
allocating weights to the criteria.
 Developing, analyzing, and selecting an alternative
that can resolve the problem.
 Implementing the selected alternative.
 Evaluating the decision’s effectiveness.

6–12
 Management Theory And Practice

The Decision-Making Process

6–13
What Is Planning?
• Planning
 A primary managerial activity that involves:
 Defining the organization’s goals
 Establishing an overall strategy for achieving those
goals
 Developing plans for organizational work activities

 Formal planning
 Specific goals covering a specific time period
 Written and shared with organizational members 7–14
Why Do Managers Plan?
• Purposes of Planning
 Provides direction

 Reduces uncertainty
 Minimizes waste and redundancy
 Sets the standards for controlling

7–15
Management Theory And Practice

Definition
• Leadership is the ability of an individual or a group
of individuals to influence and guide followers or
other members of an organization. 
Management Theory And Practice
Who Are Leaders and What Is Leadership

• Leader – Someone who can influence others and who

has managerial authority

• Leadership – What leaders do; the process of

influencing a group to achieve goals

• Ideally, all managers should be leaders

• Although groups may have informal leaders who

emerge, those are not the leaders we’re studying

6–17
Management Theory And Practice

Attributes of Leadership
• Leadership involves making sound -- and sometimes
difficult -- decisions, creating and articulating a clear
vision, establishing achievable goals and providing
followers with the knowledge and tools necessary to
achieve those goals.
• Leaders are found and required in most aspects of
society, from business to politics to region to
community-based organizations.
Management Theory And Practice

Characteristics of an effective Leader

• Self-confidence.
• Strong communication.
• Management skills.
• Creative and innovative thinking.
• Perseverance in the face of failure.
• Willingness to take risks.
• Openness to change.
• Levelheadedness and Reactiveness in times
of crisis.
Management Theory And Practice
Seven Traits Associated with Leadership
 Management Theory And Practice
Future of Leadership
• Five Sources of Managing
Power
 Legitimate power
 The power a leader has
as a result of his or her
position.
 Coercive power
 The power a leader has
to punish or control.
 Reward power
 The power to give
positive benefits or
rewards.
 Expert power
 The influence a leader can
exert as a result of his or
her expertise, skills, or
knowledge.
 Referent power
 The power of a leader that
arise because of a person’s
desirable resources or
admired personal traits.
Management Theory And Practice
Cross-Cultural Leadership
• Universal Elements of Effective Leadership
 Vision
 Foresight
 Providing encouragement
 Trustworthiness
 Dynamism
 Positiveness
 Proactiveness
Management Theory And Practice
Team

• A team is a group of people who work together toward a

common goal. Teams have defined membership (which can
be either large or small) and a set of activities to take part
in.

• People on a team collaborate on sets of related tasks that

are required to achieve an objective.

• Each member is responsible for contributing to the team,

but the group as a whole is responsible for the team’s
success
Management Theory And Practice
• Making Teams Effective

Clear Goals

External Relevant
Support Skills

Internal
Mutual Trust
Support
Effective
Team

Appropriate Unified
Leadership Commitment

Good
Negotiating
Communicati
Skills
on
 Management Theory And Practice
What Is Motivation?
• Motivation
 The processes that account for an individual’s
willingness to exert high levels of effort to reach
organizational goals, conditioned by the effort’s ability to
satisfy some individual need
 Effort: a measure of intensity or drive
 Direction: toward organizational goals
 Need: personalized reason to exert effort

 Motivation works best when individual needs are

compatible with organizational goals
Management Theory And Practice

The Motivation Process

Unsatisfied Need Tension Effort Satisfied Need Tension Reduction

• Intensity
• Direction
• Persistence
Early Theories of Motivation
• Maslow’s Hierarchy of Needs Theory

 Needs were categorized as five levels

 Individuals must satisfy lower-order needs before they
can satisfy higher order needs
 Satisfied needs will no longer motivate
 Motivating a person depends on knowing at what level
that person is on the hierarchy

 Hierarchy of needs
 Lower-order (external): physiological, safety
 Higher-order (internal): social, esteem, self-actualization
Management Theory And Practice

Maslow’s Hierarchy of Needs

Self-
Actualization
Esteem
Social
Safety
Physiological
What Is Communication?
• Communication
 The transfer and understanding of meaning.
 Transfer means the message was received in a form that
can be interpreted by the receiver.
 Understanding the message is not the same as the
receiver agreeing with the message.

 Interpersonal Communication
 Communication between two or more people

 Organizational Communication
 All the patterns, network, and systems of
communications within an organization
Four Functions of Communication

Control
Control Motivation
Motivation

Functions
Functionsof
of
Communication
Communication

Emotional
Emotional
Information
Information Expression
Expression
Functions of Communication
• Control
 Formal and informal communications act to
control individuals’ behaviors in organizations.

• Motivation
 Communications clarify for employees what is to
done, how well they have done it, and what can be
done to improve performance.
Functions of Communication (cont’d)

• Emotional Expression
 Social interaction in the form of work group
communications provides a way for employees to
express themselves.

• Information
 Individuals and work groups need information to
make decisions or to do their work.
Communication Flows

nal
a go
Di
U D
p o
w Lateral w
a n
w
r a
d r
d
Management Theory And Practice
What Is Control?

• Controlling
 The process of monitoring activities to ensure that
they are being accomplished as planned and of
correcting any significant deviations.

• The Purpose of Control

 To ensure that activities are completed in ways that
lead to accomplishment of organizational goals.
Management Theory And Practice

The Planning–Controlling Link

Management Theory And Practice
Managerial Decisions in the Control Process
THANK YOU