By the end of this sub-module unit, the trainee should be able to:
- explain the nature and scope of management
- identify various levels of management
- explain various levels of management
- explain the managerial roles
- 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 by bringing together factors of production, management enables societies to get better and increase the supply of goods and services.
DEFINITIONS OF MANAGEMENT
- According to McFarland
Management is a process by which managers create, direct, maintain and operate purposive organizations through systematic coordinated and cooperative human efforts.
- L. Londy
Management is principally the task of planning, coordinating, motivating, and controlling the effort of others towards specific objectives.
- 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.
- 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 by 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 a 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
- 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
- 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
- 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.
- 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 of
Criticism of the principles of management
- They are based on unrealistic premises
- 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
- Universality of principles– they can be applied in different types of organization
e.g. business, government, educational, military etc
- Dynamism – management principles are flexible guides rather than hard and fast rules. They are dynamic rather than 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
- 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
- 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 by 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:-
- The principles of management have been developed through continuous observation and empirical verification
- There is a systematized body of knowledge in management principles are now available in every function of management and these principles help to improve managerial
- The principles of management are capable of universal application
- Management theory helps to examine and evaluate alternative courses of action to resolve a given
MANAGEMENT AS AN ART
An art may be defined as skills or knowledge in a particular field of activity or a method of doing a thing. It means that art involves the practical application of theoretical knowledge and skills to achieve desired results. It is concerned with creating of objects or events.
Management is essentially an art because of the following reasons:-
- The process of management involves the use of know how i.e. skills and knowledge
- Management seeks to achieve concrete practical results i.e. profit, growth etc
- Like an art, management is creative it brings out new solutions and makes resources productive. Management is creative since it involves molding and welding the attitudes and behavior of people at work for the accomplishment of specific goals in a changing environmental
- Good management is efficient and the success of a manager is measured by the effective realization of organized
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 by 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 afield which is supposed to possess a well defined body of knowledge one which is leaned intellectual and organized one with entry restricted by 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 mgt 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 by 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 by standards established by an association that requires its members be accepted by a group composed with people common training
Management is not an a straight profession but it is making stride in that direction every enterprise presents possibilities for the application of the art and science of mgt and virtually every business is a potential source of employment of professional managers
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.
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 by 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
The process of planning consist of
- Determination of objectives
- Forecasting and choice of a course of action
- Formulation of policies programmers budgets schedules etc to achieve the objectives
- Laying down of procedures and standards of performance
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.
It is the process of establishing harmonious authority – responsibility, relationships among the members and the enterprise. It is the function f 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:
- 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
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:
- Integration and maintenance of employees
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:
- Issuing orders and instructions
- Supervising people at work
- Motivating i.e. creating willingness to work for certain
- Communication i.e. establishing understanding with employees regarding plans and their
- Leadership or influencing the behavior of
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 involve the following steps:
- Establishing standards for measuring work performance
- Measurement of actual performance and comparing it with the standards
- Finding variances between the two and the reasons thereof
- Taking corrective action for deviations so as to ensure attainment of objectives
LEVELS OF MANAGEMENT
The different levels of management are explained as below:
- Top management (strategic level management)
- Middle level management (tactical level management)
- 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
- 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, government, trade
- To exercise overall review and control on the company’s operation
- To coordinate the activities and efforts of different departments
- 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
- 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 division or a department.
- To motivate supervisory personnel to work for organizational goals
- To develop and train supervisory and operative
- 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
- To plan day to day production with the goals laid down by higher authorities
- To assign jobs to workers and to make arrangements for their training and development
- To supervise and control workers and to maintain personal contact with them
- To arrange material and tools and to maintain machinery
- To advice and assist workers by explaining work procedures, solving their problems etc
- To maintain discipline and good human relations among workers
- To report feedback information and workers problems this cannot be solved at the supervisory
This can be dramatically shown as below:
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:-
- 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.
- 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.
- DIAGONISTIC SKILLS
These are skills that enable managers to define and understand situations and circumstances. They assist managers to interpret situations at hand and take corrective action. They increase in importance as we move up the managerial hierarchy.
- 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 ones own position in reasonable way and assist managers in dealing with conflicts and resistance.
These skills have equal importance at all levels.
MANAGERIAL ROLES BY HENRY MINTZBERG
Henry Mintzberg identified ten managerial roles which he grouped into three categories namely:-
- Inter personal roles
- Informational roles
- Decisional 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.
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.
- 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.
- 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 posses the following qualities.
- Education –He should be well educated. He should posses both general education and specific education in business management/administration.
- Training -managerial skills are acquired through
- Intelligence –manager should have an ability to think scientifically ad analyze problems
- Leadership –Manager should be able to inspire and channel the efforts of people toward attainment of organizational goals. (Motivate)
- Foresight –The manager should be able to foresee problems which might face the business and take necessary measures
- Maturity – a good manager should be emotionally mature and have a balanced temperament. He should have high frustration
- Technical knowledge- a manager should possess peculiar knowledge to the technique of production being used in the enterprise
- Human relations attitude. A manager should be able to maintain good working relationship with others. He should treat workers
- Self-confidence. A manger should have confidence and take initiative on decision made. He should not fear carrying out his
- define the term
- Describe the skills that managers should posses in order to be effective
- Explain the ten managerial roles as propounded by Henry
- Describe the essential qualities of
EVOLUTION OF MANAGEMENT THOUGHT
By the end of this sub-module unit, the trainee should be able to:
- discuss the evolution of schools of management thought
- explain the systems approach to management
- explain the modern management approaches
EARLY CONTRIBUTORS TO MANAGEMENT
Management is as old as civilization. Evidences of management exist in:-
- Management of antiquity (ancient history)
It has been shown that ancient Babylon practices management in various ways:-
- i) They had financial control inform of stone tablets
- ii) They had concepts of managerial responsibilities as evidenced in the code of Hammurabi. The code stipulated what was expected from the cities of Babylon
Ancient Egyptians practiced management in the following ways:-
- They practiced some management in their skill of construction of pyramids. The building required a lot of planning and organization of both material and
- They had well-organized systems of leadership i.e. the pharaoh, priests and common
- They demonstrated some planning in their farming of the Nile valley and irrigating it through the
- The roman empire
The Roman Empire practiced management in: –
- Keeping records; the empire was very large and thus required complex administration
- Existence of the judiciary; the existence of magistrates created a system to control human
Roman Catholic Church
The existence of the Roman Catholic Church in Rome shows some degree of management:-
- The existence of the popes seat at the Vatican as its headquarters whose some form of centralization of authority
- The spreading of the gospel through missionary required some organization of human and physical resources
- The existence of the pope as the head of the church (leadership)
- Hierarchy of authority – the pope at the top the bishops and priests and the congregation at the bottom
- Military Organization
The success of the war generals in their conquest efforts was based in their ability to organize their men.
E.g. Napoleon, Alexander the great, Hitler
- The Bible
Examples of the bible of existence of management include:-
- In the book of exodus
- Moses led his people form captive in Egypt (leadership)
- He chose able men to be rulers over others (delegation of duty)
- Rulers judged all seasons, but difficult/complex cases were taken to Moses (hierarchy of authority)
These were a group of German and Austrian public administrators in the (16th to the 18th who held the believe that:-
- To enhance the position of the state it was necessary to maximize material wealth.
- The same qualities needed to acquired individual wealth have to be applied to the state and other departments
- They emphasized specialization of functions that is a person to what he is best in
- They advocated for simplification of administrative procedure (policies and procedures)
- They called for control techniques – how well we have achieved what we planned to
PERIOD OF MANAGERIAL AWAKENING
The period around 18th century industrial revolution of management took a more defined direction as the study was geared towards maximizing production. Pioneers of this period include: –
- CHARLES BABBAGE
He was a professor of mathematics at the Cambridge University. Through visiting industrial in UK and France. He found that manufacturers were unscientific and used guesswork in production.
He felt that science and mathematical methods should be used in operations of factories.
He advocated for
- Factories should have data/information which is obtained through research
- Determine the precise cost of every process
- Paying workers fairly and bonus when the produce is high to motivate
- JAMES WATT & MATHEW BOLTON
They were sons of the distinguished inventor of the steam engine. They used the following management techniques:-
- Market research and forecasting
- Planned machine layout to facilitate better flow of work
- Production planning and standardization of product components
- Elaborate statistical records and advanced control
- Maintenance of advanced reports and cost accounting data
- ROBERT OWEN
He was a manager of textile firm in Scotland. He believed that workers performance is influenced by total environment/working conditions. He came up with the idea of human relation in management. He emphasized on:-
- Short working hours
- Better housing facilities
- Training and workers hygiene
- Education and scholarship for workers children
- Provision of canteen and rest places in work place
N/B the extend to which these principles are practiced will depend on management perception, nature of competition, attitudes and employees perceptions, size of the business organization, rate of employee turnover, government policies and societal influenced.
THEORIES OF MANAGEMENT
Groups of assumptions have been formulated to explain productivity in business organizations. Due to forces such as technological forces, social forces, economical, political etc.
The study of theories enables managers to do the following:-
- Avoid making mistakes of the past
- Compare the past and present in order to make rational decisions
- Approach problems systematically
- Compare their business organization with other businesses
- Come up with quality goods and survive the market competitions and retain their customers
- It enables manager to maximize profit, which is the major aim of business organizations
- Make predictions for better achievement of organizational goals
DEVELOPMENT OF MANAGEMENT PRINCIPLES
Over the last century management has evolved in several faces. They can be summarized as:-
- The classical theory (1900s)
- Human relations theory (developed 1930s)
- Behavioural Science theory
- Modern Management theories
THE CLASSICAL THEORY
The classical theory was based on the assumption that people are rational and economic oriented. According to this theory people consider the opportunities available and do anything necessary to achieve highest gains. It argues that an incentive given to the employee leads to better work.
This theory has three schools of thought
- Scientific management theory
- Administrative management theory
- Bureaucratic management
SCIENTIFIC MANAGEMENT THEORY
The major advocate of scientific management is one Fredrick Taylor. He alleged that individuals could be programmed to be efficient as machines. The key to scientific management is the concept “man as a machine” Taylor believed that workers who were motivated by money and limited by physiology needed constant directions. He studied scientific management in four main areas.
- Time and task study
- Systematic selection and training
- Pay incentives 5)
TAYLOR’S PRINCIPLES OF SCIENTIFIC MANAGEMENT
- Financial incentives
High pay should be tied to successful completion of work. Loss incase of failure should be personally costly. No work no pay
- Standard conditions
A worker should be given standard conditions and appliances in order to accomplish the task with certainty
- Workers must be scientifically selected and trained so as to be more productive
- Separation between planning and doing.
There should be specialization of task whereby the management does all the planning and workers are only instructed what to do.
- Each task must be scientifically designed so as to replace the old rule of thumb method each person should have a clearly designed daily task which should require a full day’s effort to
- Bringing scientifically designed jobs and workers together so that there will be a match between
- Bilateral mental revolution. There should be a complete mental revolution on both management and workers to effect that they must take their eyes off the profits and together concentrate on increasing productions so that profits were so large that didn’t have quarrels about sharing
CONTRIBUTIONS OF SCIENTIFIC MANAGEMENT
- Promotes Expertise in the
- Enabled workers to be paid by result and take the advantage of incentive payments.
- Contributed towards standardization of tools equipments, materials and work method. Thus work could be accomplished with a higher degree of certainty
- Minimized wastage of time, material and energy thus advocated for better se of resources
- Its emphasis of scientific selection and training enabled the right people to occupy the right jobs
- It has established harmonious relationships between worker and managers through the advocating of elimination of rule of
- It has led to proper achievement of equal division of responsibilities between workers and management.
- It gives detailed instruction and constraint guidelines for worker which management
LIMITATION OF SCIENTIC MANAGEMENT
- It reduces workers to mere role of rigid adherence to methods (mindless machines)
- It puts planning and control in the hand of management and ignores worker thus lowering their morale
- It assumes that everything can be scientifically be
- It rules out any realistic bargain on wages rates, since every job was measured, timed and
- There is no room for initiative
- Scientific methods overlooks human desire for job satisfaction (job conditions are often the cause of strikes)
- It overlooked the social needs of workers since it assumed that people are rational and therefore motivated by material gains.
ADMINISTRATIVE MANAGEMENT THEORY
Around the same time when scientific management theory was in action, a similar view of classical organization theory evolved. This new theory was referred to as administrative organizational theory.
It concentrated on the broad problem of departmentation, division of labour and coordination.
For Taylor and the scientific managers concentrated on individual worker upwards, the administrative manager worked from the managing director downwards.
Henry Fayol was the main advocate of this view.
He first divided industrial undertaking into six separate activities: –
- Technical (production and manufacturing)
- Commercial (buying and selling)
- Financial (search for capital)
- Security (protection of properties and persons)
- Accounting (stocktaking, balance sheets etc)
- Managerial (planning, organizing etc)
According to Fayol managerial activities were the most important and deserved the most attention. He divided his approach of studying management into three parts.
- Managerial qualities and training
- Principles of management
- Element of management Managerial qualities and training
The following are managerial qualities according to Fayol.
- Good physical health
- Good mental health – ability to understand and learn, make sound judgment (intelligence and wisdom)
- Upright morals – willing to accept responsibilities with initiative, loyalty, tact and dignity.
Moral qualities help the manger to respect him/herself, his decision and also others
- General education – a manager should have general acquaintance with matter not belong to the function
- Special knowledge – that is knowledge peculiar to the function
- That is knowledge arising from work itself. Fayol held that managerial abilities should be acquired in the same way one acquires technical ability. That is first in school and later in the workshop.
GENERAL PRINCIPLES OF MANAGEMENT
Fayol’s principles of administrative management may be summarized as:-
- Division of work
According to this principle, work should be divided at every stage and employees assigned particular task to perform and in the essence become specialized. This will lead in turn to efficient labour utilization.
- Authority and responsibility
Fayol suggested that there should be parity between authority and responsibility. The right to give orders should be accompanied by authority.
Workers should have respect to both fellow workers and to the management. There should also be respect for agreements between employees and employers
- Unity of command
An employee should receive commands form one superior only
- Unity of direction
Activities of the same nature aimed at achieving same goals should be put under one command. That is on leader.
- Remuneration of personnel
Remunerations should be fair and satisfactory to both the employees and the employer. Workers should be paid for wages to motivate them in their work.
The decision for centralization or decentralization depends on interest of organizational purpose, quality of workers, size of the organization and nature of work to be accomplished.
- Scalar chain
Taylor suggests that there should be clear lines of authority from the top to bottom of the organization, and employees should be encouraged to follow the proper hierarchy of command. However this can be short circuited when strictly following it would be detrimental.
There should be a place for everything and everything in its place. The right man in the right place is also part of this principle. Order should be maintained all through the organization
- Subordination of individual interests to the general interest
According to this principle, the interest of the organization should super side that of the individual. The interests of an individual or one group in the organization should not prevail over the general interests of the organization.
This principle states that management should exercise a combination of justice and fairness towards employees (kindness)
- Stability of tenure of personnel
A worker should not feel threatened in his/her position. They should be given time to settle in their jobs.
This principles state that mangers should allow workers to exercise initiative by scarifying personal vanity (within the limits of authority and discipline)
- Esprit de corps
This is the principles that in “union there is strength” in other words harmony is a great strength to an organization and team work should be encouraged. This principles emphasizes the need for team work in the organization
Elements of management
Fayol regards elements of management as the managerial functions i.e.
- Planning – looking ahead and making provisions
- Organizing – arrangement of resources
- Coordination – harmonizing efforts
- Commanding – giving orders and instruction
- Control – verifying whether the result conform to the plan
Max Weber formulated this theory. He was a German Sociologist who was very sensitive to the abuse of power by people in managerial positions.
In order to reduce these abuses Weber proposed an organizational system that had a hierarchal structure based on formal authority.
From the above analysis, bureaucracy can be defined as a photo type form of organization that emphasizes order, systems rationality, uniformity and consistence.
According to Weber consistent performance can be achieved because organizational members are guided by a set of rational rules and regulations rather than the actions of position holders.
SALIENT FEATURES OF BUREACRACY
- Clear Division of Labour. (By Functional Specialization)
Job responsibilities and levels of authority are clearly defined for each employee thus there are no overlaps of responsibilities between jobs.
- A Well Defined Hierarchy Of Authority
Each position in the organization is controlled by and reports to a single position one level up in the hierarchy.
- Maintenance of Written Records
There should be a written record of organization activities that keeps rules and regulations visible to all participants. It also allows for evaluation of past decision and activities and adds to the organizational memory.
- A System of Rules And Regulations
There should be laid down rules and regulations to ensure rational and consistent organization behaviors.
Rules and regulations allow organizations activities to be performed in a predictable and routine manner.
- Impersonal Approach to all Interpersonal
This principle emphasizes equality in dealing with employees, customers or clients so as to eliminate favourism.
- Merit Based Employment
Selection and promotion within the organization should be based on qualification, ability and performance (technical competence and not family relationships, friendship or political reasons.
- Autonomous Decisions by Office
Employees must not use their rights and privileges of their jobs to enrich themselves. Power dos not belong to an individual but its part of the office.
- Centralization of Authority
For bureaucracy to operate, efficiently authority should be centralized so as to coordinate the different specialized functions.
ADVANTAGES OF BUREACRACY
- Leads to consistent employees’ behaviour. This makes management
- Assists managers to achieve and maintain quality because of strict adherence to procedures.
- It eliminates conflicting job duties because duties and responsibilities are clearly defined.
- Lead to maximum utilization of human resource (clear division of labour)
- It minimizes dissatisfaction because promotion is based on merit and
- Division of labour leads to specialization which in turn may increase production
- Helps to minimize wastage of the organization scarce resources
- Maintenance of written records makes planning
- Organizational goals may be achieved with DISADVANTAGES OF BUREAUCRACY
- Rules and procedures when many affects efficiency
- Bureaucracy makes organization rigid especially as concerns decision making
- Its very expensive as it involves a lot of paperwork
- Its time consuming especially when decisions are needed urgently. (Tall organizational structure)
- Does not give room to participative management thus kill initiative?
- It’s likely to cause resistance and dissatisfaction on the part of the employees because of its lack of
LIMITATION OF THE CLASSICAL THOUGHT
- It ignores the psychological aspects as man is seen to be motivated purely by economical incentives and nothing else
- Much emphasis has been drawn to structures and attainment of organizational goals. While peoples needs are
- There is no room for participative management, which may cause poor morale among the
- The theory has been criticized as a case of the past when organizations were relatively stable and environment being predictable
- Social aspects and group dynamics receive very little attention
- The classical theory principles are too general for today’s complex
THE HUMAN RELATIONS THEORY
This movement developed as a reaction to the classical models. It’s associated with people like Mary Follet and Elton Mayo.
Mary believed that the fundamental problem in all organizations was in developing and maintaining dynamic and harmonious relationships she believed that conflicts in organizations were not necessarily wasteful outbreak of incompatibility but a normal process through which socially valuable differences register for the enrichment of all concerned.
Elton Mayo and the Hawthorne Studies
These studies were carried out in several stages over several years.
The emphasis was on the worker rather than work itself. The studies were concerned with studying people in terms of their social relations at work. The conclusions gave rise to the ideal of social man and to the importance of human relationships.
- The first stage of the experiment was to study the effect of lighting on output.
Two groups of workers were selected for study. One group has a consistent level of light while the experimental group had its light varied form better to worse.
The significant result was that the output increased in both groups. Obviously some factors other than pure physical conditions were at work in the situation. Thus Elton Mayo was invited at this stage to carry on the studies.
- The next stage was the Relay assembly test
The objective of this study was to determine the effect of the physical conditions on productivity.
Six women form the relay assembly section were segregated and segmented to numerous changes in the working conditions e.g.
- Rest pauses were introduced and varied
- Lunch breaks were varied in length and timing
- Alteration of the working week
Once again regardless of whether the conditions were improved or worsened, productivity always increased.
At the end of the experiment the researchers realized that they were not only studying the relationship between physical working conditions fatigue, monotony and productivity but had entered into the study of employee attitudes and values.
The women were responding to the attention of the researchers and saw themselves as a special group. These behaviors has been called the Hawthorne’s effect
- Third stage consisted of interview programs to establish employees’ attitudes towards working conditions, job and
The interviews were first structured and lasted 30 min eventually the pattern became relatively unstructured and lasted longer.
The conclusion made was that relationships with people were in important factors in attitudes of employees.
- The forth stage was referred to as the Bank Wiring observation
Fourteen men from the Bank working plant were moved to a separate room with more less the same working conditions as those in the main wiring room.
It was discovered that the group was developing its own rules, standards and behaviors. They restricted production according to their norms and protect its own interests against those of the company. The group had developed its own un official organization/informal organization.
- Final stage took the form of personnel counseling in which employees were able to discuss their work problems. The result was improved relationships between workers, supervisors and the management and general personal
Main conclusion of Hawthorne studies
- Organization is a social system. This social system defines individual roles and establishes norms that may differ from those of the formal
- Social and psychological factors exercise a greater influence on the behaviour of workers. Therefore managers should adopt a sound human approach to all organizational
- Informal groups at work exercises strong influence over behaviors of workers
- There is emergence of informal leadership in the organization. This informal leadership enforces group
- Group dynamics – in organization members do not react as individuals but as members of a
- Money is not the only motivator of human behaviour, social and psychological need of workers is very strong. E.g. praise, status etc.
- Conflicts can arise between group goals and organizational goals. Conflicts should be handled properly so as not to harm the interests of
BEHAVIOURAL SCIENCE APPROACH
This approach emphasizes on behaviors of individuals and people in groups. It draws its concepts from psychology and sociology.
According to this approach, management is getting things done through people hence managers should understand human behaviors and relationships. It is concerned with human relationships and how managers can utilize the relationships for the good of the organization, the manager as a leader and the leadership style, group dynamics and motivation in management and how to improve employee’s morale. The approach focuses on how the understanding of individual behaviors and relationship influences the leadership style and general motivation at work.
Proponents of this approach include people like Abram Maslow, Mc Gregor, Fiedler, Herzburg, and Chaster Barnard.
Theories that explain human behaviors and motivation will be discussed in later chapters.
The approach is based on the generalization that an organization is a system and its components are interrelated and interdependent.
A system is a set of interrelated items, which work together for a common goal. The basis of systems theory in management is the limitations of the classical theory. Each
system may comprise of subsystems and each sub system may be further composed of smaller units.
The systems approach recognizes variety and offers a way of interacting differences by reconciling them within the organization; this is an approach which emphasizes theory and conformity.
An organization is a system because it has the following characteristics;
- It is goal oriented meaning that every organization exists to achieve certain objectives and goals
- An organization consists of sub systems inform of departments and sections, which are interdependent and inter
- An organization transforms inputs (raw materials) to outputs (finished products).
Appropriate management depends on situations prevailing at that time. According to this approach, there are no ready made universal answers to management rather the decision that a manager will make will depend on the situation.
Contingency refers to immediate circumstances that are normally uncertain. The managers as to try systematically to identify which technique or approaches in a particular situation/context best contributes to the attainment of the goals.
An example of this is the recurrent problem of how to increase productivity. The expert would prescribe as following.
- Contingency approach- Examines both ideas and how any fits the goals, structure resources of the
- Behavioral scientists- Create an environment which is psychologically motivation.
- Classical approach- Create incentive
The contingency approach seeks to apply real life situation. The ideas are drown from various school of management. Different problems and situations require different approaches and no particular approach is universally applicable.
- Explain the meaning of system approach to
- Highlight the characteristics of management as a
- Outline the benefits of system approach in
- Describe the conclusions drawn from the hawthorns studies at the western electrical plant
- Explain Fayols principles of administrative
- Describe the principles of scientific
- Explain the short comings of bureaucratic
THE CONTEXT OF ORGANIZATIONS AND SOCIAL RESPONSIBILITY
By the end of this sub-module unit, the trainee should be able to:
- describe the organization and its environment
- explain the social responsibility of an organization
- highlight management ethics
ENVIRONMENT OF MANAGEMENT
An environment is the sum total of the factors or variables that may influence the existence of a business organisation. It’s sometimes seen as all factors both outside and inside an organisation that can affect the organisation in attaining its goals.
- It’s the aggregate social, cultural, economic and physical conditions that influence the life of an individual organisation
- They are those forces from within and without the organisation that impart the organisational ability to accomplish its objectives
- Environmental factors affect the practises and type of decisions made pertaining managerial issues
- All environment can be macro or micro i.e. external & internal factors
This is the macro environment. An environment that is beyond management reach. It exists outside the organisation thus managers cannot manipulate it. External factors can be summarised as:-
- Economic Factors
Important aspects of the economy that affects decision making include:-
- Inflation – price levels (firms pay more for raw materials)
- Economic growth – influence demand for products
- Interest rates (determines how much it will cost an organisation to borrow money)
- Unemployment – influence the supply of labour
- Fiscal and tax policy – affects the control & availability of credits which affect business operations
- Constraints imposed by customers – (attitudes & desires) i.e. when a substitute appears in the market it causes confusion
- Constraints imposed by competitors
- Sociology Factors
Sociological factors are concerned with humans and their interaction with one another. These include customs & values of the society within which the firm operates
- Such forces influence consumer tastes & preferences employees expectations and attitudes and the accepted role of business in that society (Muslim religion)
- Government Factors
These forces associated with the government and legal systems within which a firm operates.
- Change in character of government e.g. change in parliament or president
- Shift in government politics
- Export & import restriction
- Change in government personnel e.g. government reshuffle, parastatal appointment etc
- Locational Factors
Where an organisation is located has a bearing on the kind of practices an organisation has. These may include:-
- Availability of both skilled & unskilled labour
- Means of transport & communication
- Housing facilities
- Water supply
- Raw material supply
- Government polity on industries
- Local laws and regulations
- Technological Factors
The rate of technological changes greatly affects the mode and style of doing business or running organisations e.g.
- Organisations that have not embraced technological changes have been thrown out of business or are incurring higher costs
- Technological advancements calls for training and development of personnel (more allocation of resources)
- Automation of work and the resultant effect on labour reduction affects workers satisfaction
Internal Factors & Environment
This is that part of organisations environment that exists inside the organisation and has immediate implications for managing the organisation. It’s the environment which
managers can manipulate and control in order to achieve their organisational goals. They include: –
- Managerial Factors
Changes in management of an organisation may affect policy and implementation. Managerial factors include: –
- Changes in managerial patterns
- Changes in personnel policies
- Changes in organisational chart
- Operational Factors
Operational factors that affect management include: –
- Factory layout and modification of factory
- Licensing policy
- Tax rates
- Growth and Development Factors
Changes in this area which may affect management can be analysed as:-
- Finance available
- Investment decisions
- Market stability
- Method/Process Factors
- New discoveries in production process
- New technologies
- Use of alternative raw materials
- Design Factors
Those are factors concerned with the designing and packaging of new products
- Designing of new products
- Appeal to the market
Social responsibility of an organization
Social responsibility refers to the business obligation to refrain from harmful practices and deliberately engage in activities that benefits the society.
Arguments for social responsibilities
- it discourages additional government intervention
- social involvement creates a favourable image
- It’s better to prevent social problem than to cure
- Give the business an opportunity to solve problems that the government has failed to solve
- Give the business an opportunity to solve problems that it has
- The society has powers to deny the operation of a
Arguments against social responsibilities
- It cuts on the profits of the
- The society pays for the social responsibility through increased
- There is lack of accountability by the business to the
- Business people lack the social skills to deal with the problems of
- Business has enough power and additional social involvement would further increase its power and
- There is no complete support for involvement in social
Ethics is defined as the discipline dealing with what is good and bad and with moral duty and obligation.
Business ethics is concerned with truth and justice and has a variety of aspects such as expectations of the society, fair competition, advertising, public relations, social responsibilities, consumer autonomy and corporate behaviour in the home county as well as abroad
Ways of enhancing business ethics
- Establishing a code of conduct
- Discussing ethical issues in management meetings
- Rewarding those who behave ethically and punishing those who do
- Managers should behave themselves ethically and be role models to other organizational
Question: Explain the reasons why managers behave unethically.
- describe the external factors that affect the
- Outline the main social responsibilities of an
- Explain the social responsibilities of an organization towards the following public.
- Local community
- Outline ways in which managers may enhance ethic in their business organizations.
By the end of this sub-module unit, the trainee should be able to:
- Explain the nature and purpose of planning
- Outline the types of plans
- Explain ways of making planning effective
- Explain the principles of
- Planning is the most fundamental function of management. It determines the course of action to achieve the desired
- Planning therefore is the outlining of things to be done, the people to do those things and the method to accomplish the objectives of the
- It is deciding in advance what to do, how to do it, when to do it and who to do it. Planning is characterized by thinking before
- Planning precedes all other managerial functions because without set goals to be reached and lines of action to be followed, there is nothing to organize, direct or control.
Nature and characteristics of planning.
- Planning is goal oriented – i.e. it is a means towards accomplishment of objectives.
- Planning involves the selection of the best course of
- Planning is mainly concerned with looking ahead into the
- Planning is required at all levels of managements (its all pervasive)
- Planning is flexible as it is based on future conditions which are too
- Planning is a continuous and unending process. (Assumption and events on which plans are based change therefore old plans have to be reused periodically).
- Planning governs the survival, growth and prosperity of an
- Planning is the basis of all management
ADVANTAGES OF PLANNING
- Planning facilitates the process of decision
- It helps management to implement programmes in a systematic
- Planning helps organizations adjust to changing environments and therefore helps reduce risks and
- Objectives of the organization can easily be achieved through proper planning.
- Planning facilitates optimum utilization of the available resources. The most efficient and economical methods are
- It encourages a sense of involvement and team spirit that in turn increases motivation.
- Planning facilitates the process of control in the organization. Sound planning enables the management to control events rather than to be
controlled by them since planning provide standards against which performance is evaluated.
- Planning serves as a training device for future
LIMITATION OF PLANNING
- Planning is an expensive exercise in the
- It is a time consuming
- It makes the entire organization set up extremely rigid as people have to follow the laid down plan. This may curb initiative and individual freedom and sometimes may cause
- Planning is based on forecasts which are never 100%
- Elasticity of plans makes planning a cumbersome process.
- Planning encourages a false sense of security against risk and
- The effectiveness of planning may be affected by external forces which are beyond the control of those responsible for preparing
- Some managers may have a negative mental attitude towards planning. They may consider the present more important than the future and may resist
TYPES OF PLANS
A plan is a projected course of action. FEATURES OF A GOOD PLAN
A good plan should have the following features;
- It should be based on clearly defined objectives
- It should be simple
- It should provide for proper analysis and classification of
- It should be relatively stable, balanced and well
- It should use all the available resources and opportunities before creating new resources.
- A good plan should be realistic and viable. This means that it should be implement
- It should open up new avenues and ways of doing things and reveal specific opportunities previously unknown to the
FORMS AND TYPES OF PLANS
- Long term planning
It covers a period more than five years though it can be extended up to twenty years or so. It is not about planning or future decision but planning the future impact of today’s decision. Prepared after an analysis of the business environment and may require change in organization structure and activities. Long term plans are developed by top management to guide the future efforts of the enterprise.
- Short term planning
It is formulated by lower level management to programme the efforts and operations of the organization for the immediate future. It refers to determination of courses of action for time periods exceeding up to three years. It is a short term plan is relatively more precise and less flexible.
- Strategic planning
It refers to the process of formulating unified comprehensive and integrated plan relating to strategic advantages of the firm to the challenges of the environment.
It involves appraising the external environment in relation to the enterprise, identifying the strategies to be adopted in future to achieve the objectives.
It is long term in nature. It is comprehensive concerned with the total enterprise. Strategic plans are therefore formulated mainly at the top level of management. It has mainly an external focus at it is designed to achieve the organizational objectives in the face of environmental opportunities and threats. It indicates how and where the firm will position itself within its environment.
Advantages of strategic plans
- It identifies the opportunities and threats which the firm is likely to face in
- It determines the future direction of a company
- It defines the manner in which the resources of the enterprise are to be
- It lays down systematic and logical procedures for carrying out the operation of the
- It provides a basis for the formulating of operational plan
- It facilitates coordination between the different division and department of the enterprise.
Strategic planning involves
- Defining the organizational mission
- Analyzing the situation (internal and external environment)
- Selecting organizational goals and objectives
- Determining the policies and strategic programs necessary to achieve goals
- Establishing methods necessary to ensure that policies and strategic programs are implemented.
- Matching the selected strategies with identified opportunities and threats in the external
Features of strategic planning
- It deals with fundamental basic problems of providing answers to such questions as:
- What is our business
- What business are we supposed to be in?
- Who are out customers? Who should they be?
- What is the unique thing that we can provide?
- It provides a basis for detailed planning and for day to day managerial decisions
- It involves a longer time frame than other forms of planning
- It is a top level activity
- It provides guidance and boundaries for operational planning
Strategic planning process
- Goal formulation
This steps defines the mission of the organization and established the objectives that will help translate the mission into concrete term
- Identification of current objectives and strategies
Managers must identity the objectives that are already in place and see how well they fit in the newly defined mission
- Environmental analysis
This tries to identify which aspects of the environment will have the greatest impact on the organizations ability to achieve the objectives.
- Resource analysis
This identifies the organizations competitive advantages and disadvantages. The profiles of the organizations resources should be developed, key success requirements to determine the manager strengths on which strategy can be based should be considered.
- Identification of strategic opportunities and threats
- Determine the extend o strategic change required
The aim is to see whether depending on the various resources and the environment the existing strategy needs to be changed.
- Strategic decision making
This involves identifying, evaluating and selecting alternative strategic approaches.
- Strategic implementation
This involves incorporating the selected strategy into the daily operations of the organization
- Measurement and control of progress
Progress of the strategy is monitored in order to ensure the implementation is going as planned and that the strategy is achieving the intended results.
- Operational planning/ tactical planning
It is a short term exercise designated to implement the strategies formulated under strategic planning. They are plans which have a moderate scope and intermediate time frame.
- Functional planning
Functional plans are prepared for various functional areas of business. Examples include production planning, marketing planning financial planning and manpower planning.
Every functional plan serves as a guide for people in a particular department.
- Standing or multi-use planning
These are recurring plans and they are used repeatedly in situations of a similar nature. Examples include objectives, policies, strategies, procedures and rules.
- Single use or Adhoc planning
These are plans set up to handle events that happen only once and then it is discarded when the situation or event is over examples include programmes, budgets, projects schedules.
OTHER TYPES OF PLANS
This refers to the unique dream of the organization. It explains the position the organization desires to be achieved in the future.
- MISSION STATEMENT
This is a central guiding concept, describing the fundamental reason for the existence of an enterprise or organization. It gives a clear cut idea about the basic long term commitment of an organization and is the basis for developing organizational objectives.
A mission statement of an organization therefore, is a unique aim that sets the organization apart from others of its type.
- ORGANISATIONAL OBJECTIVES
Organizational objectives are goals or targets towards which an organization directs its efforts. They maybe established on areas such as;
- Market standing
- Innovation productivity
- Resource level
- Managers performance and development
- Social responsibility
- Work performance and attitude
ESSENTIAL CHARACTERISTICS OF GOOD OBJECTIVES
Sound objectives should posses the following feature;
- They must be clear and specific so as to avoid confusion and
- They should be measurable so as to act as standards for
- Objectives must be result oriented and as such focus on results rather than work.
- They should as much as possible be in written form in order to act as reference and reminder.
- Objectives should be realistic and
- They must also be well coordinated
IMPORTANCE OF OBJECTIVES
- Clear objectives leads to unified plans
- Objectives act as motivators to those who are assigned tasks to accomplish them.
- The lead to unity of direction for organizational
- The serve as rationale for resource
- Unproductive tasks can be avoided when work is goal
- Objectives act as standards for control of
- They act as sound basis for developing administrative
BARRIERS TO EFFECTIVE GOAL SETTING.
- Educating and training managers on goal
- Making available enough resources to assist in goal setting.
- Low Morale of
- Lack of
- Lack of coordination.
MANAGEMENT BY OBJECTIVES (MBO)
MBO is a system of Management where the organization strives to attain its goals while at the same time meeting the goals and satisfaction of each member in the Organization. MBO Involves effective participation and involvement by each member of the Organization.
CHARACTERISTICS OF MANAGEMENT BY OBJECTIVES (MBO)
- MBO focus on goals and their achievement
- MBO is characterized by high degree of participation of the concerned people in goal setting and performance appraisal.
- MBO tries to inter-relate goals in the
- MBO aim at improving relationships in
- Optimization of
- Multiple accountability:
STEPS INVOLVED IN MANAGEMENT BY OBJECTIVES
- The manager explain the rational and methodology of MBO to subordinates
- The superiors and subordinates meets to set the objectives for the coming period
- Superiors and subordinates agree o n the subordinates goals
- Subordinates are then given necessary advise and resources required
- Subordinates are then given enough time to pursue their goals at one’s own pace
- Each time the superiors hold periodic meetings with the subordinates to evaluate the degree and goal attainment
- At the end of a specified time period, the superiors and subordinates hold meetings to assess whether the goals have been attained
- If the subordinates have achieved their goals they should be rewarded and asked to set other goals
- At the conclusion of the time period set for the achievement of the objective a final review is conducted and necessary action is taken
- In cases the subordinates do not attain the goals corrective action is taken and the subordinate is asked to go back again
ADVANTAGES OF MANAGEMENT BY OBJECTIVES (MBO)
- MBO forces managers to think in term of results rather than activities. This leads to improved
- MBO provides a basis for training and development
- MBO provides a basis for performance appraisal (help evaluate employees)
- MBO leads to participatory management which may increase workers Motivation and
- MBO saves top management time to address other Organizational
- MBO may lead to good health manager and subordinate
- It’s a basis for reducing conflicts and resistance to
DISADVANTES OF MANAGEMENT BY OBJECTIVES
- Its time consuming in case of large
- MBO involves a lot of paperwork making it very
- There may be a problem of participation by some
- Objectives are difficult to set especially if they owner along
- MBO Inflexible / rigid.
- MBO emphasizes of short term goals at the expense of long term
- The Organization may over emphasis on quantitative goals at the expense of qualitative
Policies are general statements which guides thinking in decision making. A policy defines the limit within which decisions can be made and achieved.
Thus policies are statements which provide ready answer for day to day members of the organization.
TYPES OF POLICIES
- Originated Policies
these are deliberately formulated by top manages on their own initiative holder to guide the actions of their subordinates.
- Appealed policies
These are formulated on requests / appeals of subordinates.
- Imposed policies
Are those policies that arise from the influence of offside forces like government, trade unions e.t.c
- Implied Policies
Are those policies inferred from the behaviours or conduct of organization al members particularly the top executives. (Interpreting the action of the boss) e.g. promotion made on the basis of seniority.
ESSENTIAL CHARACTERISTICS OF SOUND POLICIES
- Should be based on the objectives of the organization & also contribute towards attainments of
- Should make for consistence in the operations of the
- Should be relatively stable
- Should be flexible i.e. give room for
- Should be clear, unambiguous and explicit .It should not leave scope for misinterpretation.
- Should be reviewed & revised regularly so as to be
- Should be communicated to the concerned
- Should be consistent with the ethical behaviors of the
- Should be based on careful consideration of resources and environment of the organization.
POLICY FORMUTATION PROCESS
The process of policy formulation involves the following steps
- Definition of the policy area
The policy area should be decided in view of the objectives and needs of the Organization.
- Identification of policy alternatives
Alternatives policies are developed in light of both internal and external environments of the organization.
- Evaluation of alternative
The Identification policy alternatives are evaluated in terms of their contribution to the organizational Objectives, cost and implication.
- Choice of policy
The most appropriate policy is chosen.
- Communication of policy
The policy should be communicated to those concerned with its implementation.
IMPORTANCE OF POLICIES
- They facilitate quick and correct decisions by serving as guides to thinking and action.
- The save time and effort by pre-deciding
- Effective policies lead to unfired pattern of action
- Good policies assist in training & orientation of new
- They permit delegation of authority to lower level employees: – subordinates can understand their tasks and what is expected of
- Policies bring about coordination of organizational
A procedure is a step by step process showing how to handle/ undertake a certain activity. It lays down the specific manner in which a particular activity is to be preformed.
ESSENTIALS OF A GOOD PROCEDURE
- Should be simple and straight forward to be
- Should be put in written for reference
- Should be tested before
- Must be reviewed and revised regularly to keep them up to
- Must be consistent with the objectives of the
- Should be communicated to those
IMPORTANCE OF PROCEDURES
- Simplify work by eliminating unnecessary
- Ensures consistence of operations in the organization thus eliminating
- Provides standards for appraisal of employees.
- Minimizes wastage of Organizational
- Indicates a standard way of performing work and therefore ensures uniformity of action
- It eliminates need for further decision making by laying down a standard path to follow.
Rules are prescribed guide to conduct. They specify what to be done and what may not be done in a given situation. They do not give any room for decision making. They are in the nature of commands seeking to structure, discipline and restrain behaviour of a group in formal organization
A method outlines the specific way in which a particular step in the procedure is to be performed. It specifies the mechanical way by which an operation is to be performed.
Is a single use plan which contains a series of actions designed to accomplish a given task. A programme specifies;
- Steps to be
- Resources to be
- Time limit for each
BASIC STEPS IN PROGRAMMING.
- Divide various activities needed into clear cut
- Arrange the steps into a
- Allocate responsibilities to particular
- Allocate time duration for each
- Determine the other resources
- Write down the
A project is a scheme for investing resources. It usually contains time bound activities which have to be accomplished over time.
Scheduling is the process of establishing time sequence for work to be done schedule prescribes the exact time when each activity should begin and end.
Starting and finishing dates for different activities
They are essential for avoiding delays and for ensuring continuity.
Is a criterion against which performance is compared and evaluated? It is a guide for performance evaluation.
Is a statement of anticipated results expressed in numerical terms for a specific period of time in future.
Budgets are usually prepared for certain duration of time.
WAYS OF MAKING PLANNING EFFECTIVE
REASONS WHY PEOPLE FAIL IN PLANNING
- Lack of commitment to planning
- Failure to develop and implement sound
- Lack of managerial objectives and
- Underestimation of the importance of planning premises
- Excessive reliance on
- Lack of support from the top management
- Lack of adequate control measures
OVERCOMING PLANNING BARRIERS
- Planning should not be left to chance. A climate conducive to planning should be created in the
- Planning must start at the top. Top management initiative and support is essential for effective
- Planning should be definite, that is time specific and
- Plans must be properly communicated to all those concerned in the
- Long range planning should be integrated with short range
- Planning must include awareness and acceptance of change as a necessary
- Planning must be organized to allow for a wider participation in the formulation and execution of
- Plans should be flexible to allow for easier adoption to the changing
- Managers need to be educated and trained on the art of planning and the need for the
- Plans should be revised regularly to ensure that the premise, on which they were based on, still
PRINCIPLES OF PLANNING
- The Principals of contribution to objectives
This means that planning aims at facilitating the achievement of organizational goals. therefore a good plan should indicate how the stated objectives will be achieved.
- The principle of primacy of
It states that planning comes first in all managerial functions and therefore each manager must start with planning.
- Principle of efficiency of plans
It states that the goodness or efficiency of a plan should be measured by its contribution to the objectives as offsets by the costs.
- Principle of planning premises
It states that the better the understanding of the planning premises the more coordinated the plans are.
- The principle of strategy and policy Framework
It states that the more strategies and policies are carefully developed and understood, the more the consistent and effective the plans are expected to be.
- Principle of commitment
It states that good planning should allow a period in future necessary to foresee the accomplishment of plans.
- Principle of flexibility
It state that each plan must give room for corrections and therefore plans should not be rigid.
- Principle of Limiting Factor
It states that each plan must identify the limiting factors or critical points that are likely to affect the plans.
- Principle of navigational change
It states that each good planning requires continuous revision such that planning is a continuous process.
The work of a manager involves working on decisions and constantly solving problems. The manager therefore has to confront problems and make effective decisions on what action to take.
Decision making refers to the process that leads to the selection of an alternative between two or more competing alternatives.
Steps in decision making
- Identify And Define The Problem
A problem is half solved when it is well defined. Accurate dignosis of the problem is necessary to find the right solution. This step should result in a statement of the desired result. Cause, magnitude and boundaries within which it can be solved is also identified.
- Analyse the Problem
This step involves collection of all facts that are pertinent to the decision. The data collected must be classified and analysed.
- Develop Alternative solutions
Alternatives are possible courses of action. Identify various possible courses of action.
- Evaluate The Alternatives
The developed alternatives are then evaluated on the basis of their contribution to the organizational goals and the limiting factors involved. (Risks, economy, timing, other resources)
- Select The Best Alternative
Evaluation of alternatives will reveal the best alternatives. This is where the real choice is made and a plan of action adopted.
- Implement The Decision
Implementation of the decision involves developing detailed plans, communication of decisions, gaining acceptance of decisions and cooperation of those concerned.
- Follow Up
Actual results of the decisions should be compared with the expected results and appropriate action taken.
- Explain the nature and purpose of
- How can managers make planning effective?
- Describe the strategic planning process
- Explain the principles of planning
By the end of this sub-module unit, the trainee should be able to:
- explain the nature and purpose of organizing
- outline types of organization structures
- explain ways of making organizing effective
This is an activity which establishes human adjustment among all the factors of production. Organizations are social entities which coordinates the activities of a number of people for their achievement of some common goals through division of labour and well defined systems of working.
Organizing can be seen as a process.
As a process therefore, organizing can be defined as follows
- A processing of welding together a framework of position which can be used by the management for the purpose of accomplishing the organizational
- It’s a process of identifying and grouping the work to be performed, definitions, responsibilities, delegating them and giving authority together with establishing relationship for the purpose of enabling people to work most effectively in accomplishing organizational
- It’s a process of grouping of activities necessary of the purpose of achieving organizational
Organizing can be seen as a structure.
As a structure organization, structure consist of those aspect of patterns of organization, organizations that are attractively stable and change only slowly.
Equally, organization as a structure can be defined as a system of relationship that governs the activities of people who are dependent upper each other / changing the common objectives.
IMPORTANCE OF ORGANIZATION
- Organizing is an aid to management-it aids management in accomplishing organizational
- It facilitates growth of the organization i.e. it assists in recruitment of staff, delegation of authority assignment of responsibility
- It helps to ensure optimum use of human resources because it affects human resources in different ways such as training, placement of workers, creating of harmony, improving communication
- It stimulates creativity e. it encourages divergent thinking and makes employers to be innovative.
- It facilitates stability of the business organization because it has flexibility to adjust to
- It encourages adoption to technology because it facilitates optimum use of technological
- It leads to executive development because it provides training
- It helps to ensure cooperation among workers because it entails communication reducing
9) It establishes responsibility and prevents buck passing
- It eliminates disputes between individuals
- It provides for easier communication and helps in developing executives
- It assists in measuring a person’s performance against his or her responsibility
- It aids in equitable distribution of work and functions
- It permits expansion and contractions without seriously disrupting the existing structure
- It prevents duplication of work
- It makes organizational goals possible without adequate control and without literally killing top executives through overworking.
Essential elements of a good organization
- A good organization must be helpful in the achievement of objectives
This means that it must be c capable of overcoming the problems of an organization
- There must be harmonious grouping of functions: meaning that a good organization should divide the functions in the enterprise in such a way that they can be implemented easily and
- An organization must be complete in all aspects
It means that a good organization must include all the activities of the enterprise and there should be no any repetition of the activities (duplication)
- There must be perfect coordination in all the activities of the
If the activities are not coordinated, the achievement of the objectives of an organization cannot be thought off.
- There must be reasonable span of control
Through means that each manager or supervisor must have is reasonable number of subordinates under him or her.
- There must be proper utilization of resources
This means optimal use of resources this minimizes wastage and maximizes profits.
- There is provision of expansion
This means that the organization must provide for adequate flexibility so that necessary adjustment may be made in accordance to the needs of the charging circumstances
- There has to be employee satisfaction. This includes job satisfaction which minimizes high staff turnover
- There must be a policy which can be executed easily and
The process of organizing
The building up of an organization is the most important function of management. The process of organizing consist of the following steps
1. Determination and division of work
This is about determining the tasks required for the accomplishment of established objectives via divided business activities into technical, commercial, financial, security, and accounting and managerial. In a modern business enterprise manufacturing, marketing, financing, purchasing and personnel are considered to be the main business activities.
2. Grouping activities
The various activities identified above are then classified into appropriate departments and divisions according to similarities and common purpose.
Such grouping of activities is known as departmentalization. Activities may be grouped on the basis of functions, territories, customers e.t.c
Each department may be further divided into sections and subsections to create a logical structure.
3. Assignment of duties
The individual departments are being allotted to different positions and individuals. The duties of every individual are defined on the basis of his abilities and aptitude
Clearly definition of the responsibility of each individual is necessary to avoid duplication of work and overlapping of efforts. Every individual is made responsible for the specific job assigned to him. In this way, duties are assigned to specific individuals.
4. Delegation of authority
One of the duties and responsibility of every individual have been fixed, he must be given the authority necessary or equivalent to carry out the duties assigned to him
A chain of command is created from top to the bottom through successful delegation of authority.
The process of organizing is a series of steps which must be undertaken to create logical structure of authority responsibility relationship. This process involves division of work, placement of individuals on jobs, delegation of authority, coordination of individual efforts and execution of responsibility for the results.
Principles of organization
The following are the major principles of organizing:
1. Principle of objectives
It states that the objectives of the business concern formulating the organizational structure and achieving the desired results with minimum costs and efforts.
2. Principle of specialization
It states that good organization must divide work into smaller activities and entrust each to individuals with enough skills in better performance and quality.
3. Principle of span of control
This states that span of control should be minimized because there is a limit to the number of persons that can be effectively supervised by one boss.
4. Principle of exception
This means that only exceptionally, complex matters should be referred to the executives for decision making otherwise managers should handle matters relating to their levels.
5. Principle of scalar chain
This is sometimes known as the scalar principle. From the chief executive at the top of the enterprise to the first line of the bottom which must be clearly be stated. This is also known as chain of command. This is likely to minimize any confusion in organizational function
6. Principle of authority
This means that the responsibility and authority of each manager and supervisors should be clearly defined. It also implies that the authority given must be equal to the responsibility entrusted to the manager.
7. Principle of unity of command
This states that each subordinate should have only one supervisor to report to. This is likely to minimize the disorders, delays and confusion. It also reduces conflicts
8. Principle of delegation of authority
According to this principle, the authority delegation should be equal to the responsibility so that to enable the concerned person to accomplish the task assigned to him/ her by his or her supervisor. This helps to minimize partial delegation.
9. Principle of responsibility
This states that the superiors should not be allowed to avoid responsibility by delegating authority to his or her subordinates. The superiors therefore must be held responsible to the acts of his or her subordinate to whom he or she has delegated authority.
10. Principle of flexibility
This states that the organization structure should be such which should be adaptable to the changing circumstances, meaning that there should be room for expansion and replacement without disrupting the basic design of the structure. It also means giving room for addition of subtraction if need be.
11. Principle of simplicity
This states that the organization structure should be simple enough with minimum number of levels. This is likely to reduce the problem of poor coordination and communication.
12. Principle of continuity
This states that the structure should be such that its serviceable for a long time. This is possible if it’s dynamic and capable of adopting itself to the views of changing circumstances.
13. Principle of unity of direction
This states that for a group of activities having the same objectives there should be one plan and one objective this facilitates verification and coordination of activities.
14. Principle of efficiency
This states that the structure that is formulated should enable the business concern to function efficiently and achieve its objectives with minimum costs and efforts.
15. Principle of balance
It states that a good organizing must put balance on all types of factors of production so that inefficiency is reduced.
Organizing is considered a process which contains the following key components and concepts
- Job design
- Grouping of jobs/departmentation
- Authority and responsibility
- Span management
- Organization structure
i. Job design
This is the process of determining what procedures and operations are to be performed by the employees in each position based on qualification and experience. The basis for all job design activities and job specialization which involves a definition of the task that distinguishes one job from the others
ii. Departmentation (grouping of jobs)
This is the process of grouping jobs into logical sets in an organization.
It is also a process of grouping individual jobs into departments as well as equipment. A department is a distinct area, unit or a subsystem of an organization over which a manager has authority for performance of specific activities. It is also known as division, branch battalion etc.
DEPARTMENTATION IS REQUIRED DUE TO THE FOLLOWING REASONS.
- Specialization- Departmention enables an enterprise to take advantage of specialization since division of work becomes
- Expansion- With expansion only one manager can oversee a limited number of subordinates. In the absence of departmentation the size of the enterprise remains limited.
- Autonomy- Departmentation results in the division of the enterprise into semi- autonomous units. In this units every manager is given adequate freedom. Autonomy provides job satisfaction and motivation which in turn leads to higher efficiency of
- Appraisal- Appraisal of managerial performance becomes easier when specific tasks are assigned to departmental
- Fixation of responsibilities- Departments enables each person to know the specific part he / she is to play in the total organization. It provides a basis for building up loyalty and
- Management development- Departmentation facilitates communication, coordination and control. It simplifies the training and development of executives by providing them opportunity to take independent decisions and to exercise
- Administrative control- Grouping of activities and personnel into manageable units facilitates administrative control. The standards of performance for each and every department can be precisely
Departmentalization usually groups jobs according to one of the following bases;
a. Departmentation by simple numbers
This was once an important method in organization of tribes, clans, armies e.t.c the simple numbers method of departmentation is achieved by tolling off people who are to perform the same duties and putting them under the supervision of a manager.
The essential fact is not what these people do, where they work, or what they work with. It is that the success of the undertaking depends on the number of people involved in it.
b. Departmentation by time
This is a form of grouping jobs which has generally at lowest levels of organization. The use of shifts in many enterprises where for economic, technological or other reasons, the normal working day would not be enough.
Example of this kind of department is the hospital where around the clock patient care is essential. Similarly, deferent departments have to be ready to respond to the emergencies at any time.
A factory operating for 24 hrs may have three departments, morning, day and night shifts.
c. Departmentation by function
Functional departmentation entails what enterprises typically do.
Employees who are involved in the same or very similar features are grouped together. The basic enterprise functions are;
- Production i.e. creating utility or adding utility to a good/ service
- Selling i.e. finding customers, patients, clients, students, or members who will agree to accept the services/ goods at a price
- Financing i.e. raising and collecting, safeguarding and expanding the finances of the enterprise
The coordination of activities may be achieved through the rules and procedures, various aspects of planning such as budgeting the organization hierarchy e.t.c
Advantages of departmentation by function
- It maintains power and prestige of major functions
- It is logical and time proven method
- It follows the principle of occupational specialization and thereby facilitating efficiency into the utilization of people
- It simplifies training
- It provides a means of maintaining tidy control at the top because top managers are responsible for the end results
- Coordination is improved since work is not duplicated at specific functional levels
- It provides better opportunities for growth and career development
Disadvantages of departmentation
- Responsibility for profits is at the top level only
- It results into slow adaptation to changes in environment
- It reduces coordination between functions at overall level
- It deemphasizes the overall company objectives i.e. it leads to sub optimization
- It limits development of managers who need certain knowledge and experience in all enterprise functions
- The chain of command becomes excessively long as new levels are added this may slow down communication
BOARD OF DIECTORS MANAGING DIRECTOR
MARKETING PRODUCTION FINANCE
QUALITY CONTROL PROCESSING REPAIRS AND
Chart showing departmentation by function.
- Departmentation by product
The activities associated with individual products or closely related products lines are grouped together. This structure permits top management to delegate to division executives authority over the manufacture, sales and engineering.
- All activities associated with unique products are kept together
- Profitability of the various products is more easily evaluated
- Internal competition is promoted I.e. one product line competes with another
- It uses specialized technology
- Some duplication of efforts may results i.e. each product line may require its own accountant, engineer, marketing staff t.c
- Coordination of departments mat be difficult
- Additional management personnel may be required to handle different product lines
- The firm may find it difficult to adopt itself to changes in demand and technology
e. Departmentation by location, territory/ geographical
Jobs are in one location or nearby locations are grouped together into one department and allocated a manager.
Territory departmentation is very useful to a large scale enterprise whose activities are geographically spread e.g. banks, insurance companies, transport companies, supermarkets; distribution agencies e.t.c. the ultimate authority for performing the basic organizational functions is still retained by the headquarters.
- It places responsibility at lower levels
- It improves coordination within the region
- It places emphasize on local market and problems
- It improves face to face communication with the local people
- It provides a measurable training ground for general managers
- The managers can give special attention to the needs and problems of the local market
- It requires more persons with general manager ability
- Coordination and control of a different branches from the head office becomes less effective
- There is duplication of resources especially the human
- The branches are expensive to
- Due to the geographical
iii. Authority and responsibility
This involves the determination of how authority and responsibility are managed in the organisation
At the level of an individual manager and his subordinates, it involves the delegation process while at the level of the total organisation it relates to decentralization.
Delegation is the process through which the manager assigns a portion of his work or task to the subordinates.
Decentralization on the other hand is where power is spread down the employees. Power is the ability of an individual or group to influence the believes or the actions of other people or groups
Authority in an organisation is the right in a position and through it, the right of the person occupying the position to exercise discretion in making affecting other persons. Responsibility is the obligation of the subordinates to carry out the duties assigned to him. Responsibility is a personal attribute, it’s an obligation to ones’ own superior, and no person can shift his responsibility by delegating his authority to others.
Accountability is subordinates obligation to render an account as report of his activities to the superior. To be accountable, is to be answerable in respect to obligations fulfilled or unfulfilled.
Accountability grows out of responsibility and goes hand in hand with it. A person who is responsibility for something is also accountable for the results.
Sources of power/ bases of power;
- Legitimate power
This normally arises from a position and derives from our cultural system of rights, delegation and duties when a position is accepted by people as being legitimate.
B. Reward power
This arise from ability of some people to grant rewards
C. Expert power
This is the power of knowledge, physicians, lawyers; university professor’s
e.t.c. may have considerable influence on others because they are respected for their special knowledge.
- Referent power/ charismatic power
This is the influence that people or groups may exercise because people believe in them and their ideas.
E. Coercive power
It is the power to punish, whether by firing a subordinate or withholding demerit. It arises from legitimate power.
Types of authority in an organization
- Formal authority
This is normally confined by the law or delegated within an organization based on the organization structure. It has to be in writing and known to all managers or executives and employees in an organization.
b) Line authority
This authority can be regarded as the main authority in an organization. It is the ultimate authority to decide upon matters affecting others and it’s the main feature of superior subordinate relationship.
Line authority is not absolute; it must be applied with discretion within the limits of delegated authority and must relate to performance of jobs which leads to the attainment of the objectives of the organization.
c) Staff authority
Its scope is very limited as there is no right to command. It is concerned with assisting and advising and it is used where line authority becomes inadequate. Specialized skills are used to direct or perform those activities which the line managers cannot effectively perform.
Staff authority is subordinate to line authority and its purpose is to aid the activities which are directed and controlled by line managers
d) Functional authority
This authority is also subordinate to line authority but in comparison with staff authority, it conflicts upon the holder the right to command in matters relating to the functions. It therefore has limited right to command and help the superior to delegate authority to command to the specialist without bestowing full line authority.
Where organizations have a central head office and branches, functional authority is often used e.g. The head office, Human resource director renders staff functions for the whole company, but he usually exercises functional authority on human resource matters in his relationship with branch human resource officer.
It is the process whereby an individual or group transfers to some other individuals or groups the duty of carrying out some particular action and at the same time taking some particular decisions.
- It means, in effect and trusting some part of the work of management to subordinates
- It is the process of vesting decision making discretion to subordinates by the superiors
- Responsibility is not surrendered since no manager avoids ultimate responsibility by delegating
- The work is delegated and the superior holds the subordinates The subordinate is responsible for doing the job and the superiors’ responsibility to see the job is done.
Elements/process of delegation
- Assignment of duties to subordinates
- Granting authority to make commitments to the extent necessary to enable them carryout those duties assigned
- Creating an obligation on the part of each subordinate; This enables satisfactory performance of the job
Types of delegation
- General/specific delegation
General delegation is where any person is granted authority to perform the various functions his department or division but the exercise of authority by each subordinate continues to be subject to an overall regulation and supervision by his subordinates. Specific delegation is functional in character, subordinates are given different specific functions to perform i.e. the production manager may delegate the authority for production and the accounts officer may delegate authority for accounting matters.
2. Written/unwritten delegation
Written delegation is made by written orders/ instructions. Unwritten delegation is based on customs, conventions, agreements, usage e.t.c.
3. Formal/informal delegation
Formal delegation of authority is laid down in the organization structure on an enterprise
e.g. the sales manager is assigned the responsibility and the accompanying authority to maintain and promote sales.
Informal delegation occurs when employees perform certain duties not because these are assigned to them but because they feel that they can perform their tasks better and in time.
4. Downward, upward and sideward delegation
Downward delegation occurs where the superior assigns duties and delegates authority to his immediate subordinates.
In upward delegation, a subordinate assigns some of his tasks to his immediate superior. This is a rare kind of delegation.
In sideward delegation, a subordinate assigns some of his duties and tasks to another subordinate of the same rank.
Guidelines to ensure effective delegation
- Grant proper amount of authority
It means that responsibility should not be less than authority delegated. Enough authority should always be delegated to achieve the desired results.
2. Make sure that authority is clearly stated.
Authority relationship should be clearly defined not only to the subordinates in question but all others concerned as well.
3. Define the results expected
This will enable the subordinates to know by what standards their performance should be charged
4. Consider the capability of the subordinates
Authority should be delegated to those who are competent and willing to accept delegation. People should be selected in the right of the jobs to be done.
5. Follow unit of command and chain of command.
Every subordinate must at a time receive orders and be accountable to only one superior. In delegating, it is also important to follow the chain of command where authority flows from the highest manager to all the subordinates at all levels
6. Modify the authority whenever necessary
Managers should maintain flexibility attitude about what kind of and how much authority to delegate. This is because the environment of the business is dynamic and authority relationship needs to be altered from time to time
7. Develop a willingness to delegate
No organization can function without delegation, managers must be willing to let go and let others make mistake if delegation is to work.
8. Develop effective communication
There should be a free flow of information between the superior and the subordinates. This enables the superior to give clear instructions and the subordinates to seek necessary clarification
9. Establish an effective control system
Manager should put controls in place to ensure that the authority delegated is used properly. The superior should set the performance standards and evaluate subordinates performance periodically and help them improve.
10. Appropriate incentives
Suitable financial incentives are provided to reward subordinates for the successful assumption of authority.
11. Allocate sufficient resources
Why managers do not delegate
- Feeling of superiority– a manager may have a feeling that his subordinates are not capable enough to do any work without close supervision. He may therefore concentrate all decision making in his
- Fear of exposure- if the manger is himself not competent to plan ahead, and decode which tasks should he delegate to whom he may avoid delegation of authority because doing so will expose him for what he is incompetent and as a disorganized person
- Risk avoidance– the feeling of insecurity may be a major reason for reactance on the part of the manager to delegate authority. Despite the delegation of authority, the manager will continue to be accountable for the actions of subordinate and these might deter him from running the risk of decision making to
- Feeling of indispensability– if a manager has inflated sense of his own worth, and wants other s to realize his importance, he may delegate authority such that everyone around him is dependent on him for decision
- Habit pattern– if as a result of practice of close supervision, the manager has developed personal contact with all aspects of work, he may avoid delegation of authority so as to sustain the deep, seated habit
- Loss of importance– a manager may feel that delegation of authority to subordinates may lead to diminution of his authority and divest of the importance enjoyed by him as the centre of whole
Why do subordinates fear delegation
- Fear of criticism
The subordinates’ reluctance to accept delegation of authority may be due to fear of criticism of mistakes. They may have a fear that even the slightest mistake on their part may lead to their dismissal from service
They consider it safe to carry out the decision handed down to them by the superiors than to make decision themselves
c) Lack of self confidence
Sometime, the subordinates may avoid acceptance of delegation due to lack of confidence in their capabilities to discharge new responsibilities
d) Inadequacy of information and resources
They may fear that delegation in their case will mean assignment of activities to them without a matching authority over the relevant information to facilitate decision, making or the necessary human and physical resources to carry out the decision
e) Inadequate incentives
If delegation of authority is not accompanied by suitable incentives, subordinates may not be motivated to accept it willingly
Advantages of delegation
- Reduction of managerial work load-delegation reliefs the manager of the need to attend to routine types of duties
- Basis of effective functioning- it establishes a relationship through the organization an d helps in achieving coordination of various activities
- Benefit of specialized services-it enables the manager to benefit from specialized knowledge and expertise of persons at lower levels
- Efficient running of the branches- in the big organization, delegation can provide key to smooth and efficiently running of the various branches of the business
- An aid to employee development- delegation enables employees of the business to develop their capabilities to undertake new and more challenging jobs. It also promotes job satisfaction and high employee motivation
- An aid to expansion and diversification of the business- with the employees fully trained in decision making in various areas of the business, it can confidently undertake expansion and diversification of its activities
This is the process of transferring all the authority to all levels of management to enhance efficiently in the performance of the task. According to Koonts and O Donnel decentralization of authority is a fundamental phase of delegation.
According to Allen, decentralization is the systematic effort to delegate to the lowest level of all the authority, except that which can only be exercised at the top (central point).
Difference between delegation and decentralization
It is an act/process it is the end results of delegation and dispersion of authority to various levels
It is vital to management
its optional in the sense that the top management favour a deliberate policy \to work for a general
dispersion of authority
It refers to the relationship between two
it refers to the relationship between
individuals i.e. a superior and his immediate top management and various
department and activities in the enterprise
Control over a subordinate performance is exercised by the superior who constitute the source of
delegation of authority.
the power to control may be delegated to departments concerned
Guidelines determining the degree of decentralization of authority Decentralization is not just physical dispersion of activities. An enterprise, whose activities and function are confined to a small area, may have a greater decentralization than the ones whose activities and functions are distributed over a wider area.
The degree of decentralization in an enterprise is determined by the combination of the following factors:
a) Competence of the personnel available
The competence and the capacity of subordinates or managers is an important determinant of the degree of decentralization. When the managers of the enterprise are
capable and experienced enough, to make important decisions decentralization could be easier.
b) Size and complexity of the organization
The larger the enterprise the more the authority the central manager is forced to delegate. With growth in size and complexity of the organization, decentralization is necessary to ensure to ensure speed and accuracy of decision making and flexibility of the operations.
c) History of the organization
A firm is likely to have a very centralized structure if it has grown primarily from may be personal leadership
d) Adequacy of communication system
Managers may seek to avoid decentralization through the development of a good communication system that provides for speed, accuracy and capacity of information needed for top management to exercise centralized control.
e) Dispersion of the organization
Geographical dispersion of the organization tends to result in greater decentralization of authority.
f) Uniformity of policies
The greater the need for uniformity of policies the greater will be the degree of centralization
- Environmental influences e. tax policies, action of competitors, economic forces, government policies, technology, customers’ e.t.c.
h) Philosophy of the top management
The attitude of the top managers has an important bearing on the degree of decentralization
i) Business dynamics
- Desire for independence
- Control techniques
The degree of decentralization tend to be greater where an effective control system is not available
Advantages of decentralization
- It can contribute to staff motivation by enabling the middle and junior staff to get a test of responsibility and encouraging the use of initiative by all employees
- It encourages decision making and assumption of authority and responsibilities
- It results in the principles of democratic management
- It encourages smooth diversification of products and markets
- It prevents the top management overload by freeing them from many operational decisions enabling them to concentrate on their strategic responsibilities
- It speeds up operational decision making by enabling line units to take local actions without reference back
- There is better communication
- It focuses attention into important matters of cost and profit centres within the total organization these sharpens management awareness of cost effectiveness as well as revenue targets
- It enables local management to be flexible in their approach to decisions, this is after taking into account the local conditions and make decisions that are more adaptable in situations of rapid change
Disadvantages of decentralization
- It results into higher operational cost and duplication of resources
- It requires an adequate control and communication system if major errors of judgment are to be avoided on the part of the operational management
- It requires greater coordination by senior management to ensure that individual units within the organization are not working against the overall organization e. need to control sub optimization
- It can lead to inconsistency of treatment of customers, clients or the public especially in service industries
- It requires plentiful supplies capable and well motivated managers who are able to respond to the increased responsibility which decentralization brings about
- It may encourages a parochial attitude in subsidiary units, who may be inclined to look more to their own needs then those of the colleagues in the organization
IV. Span of management/ span of control
This refers to the number of the people or employees that a superior can effectively supervise. It is the number of subordinates or employees reporting directly to one person (a superior)
In practice, spans of management can vary between 1-40 or more subordinates directly supervised, although the most likely range is between 3-20. Small spans of management tend to be found among managerial, professional and technical groups.
Factors affecting the span of management
- Location – incase of geographically scattered operations, the span has to be narrow because one executive cannot effectively manage the distinct and distributed operations
- Competence of the superior – executives who are more capable can supervise large number of subordinates than those who are less competent
- Caliber of subordinates – the more qualified and experienced subordinates are, the lesser will e the pressure on the superior and the wider the span of management
- Nature of work – in case of routine repetitive operations, span can be wider since subordinates do not frequent guidance from the superior. In case of specialized and frequently changing of duties, and those involving constant interaction, the span of management has to be narrow
- Level of authority – at higher levels of management, span of control is generally narrow than at lower
- Clarity of plans – the more clear and understandable the plans are, the wide the span of
- Communication techniques – more effective is the communication, lesser is the need for face to face contact and wider may be the
- Staff assistance – an executive can supervise more subordinates when advice and assurance of the staff specialists is available to him
- System of control – span of management has to be narrower where the control is exercised through personal supervision
V. Organization structure
This may be defined as the prescribed pattern of work related behaviors which are deliberately established for the accomplishment of organizational objectives. It serves as an instrument for the introduction of logical and consistency relationship among the various decision function which made up the organization.
Specialization and coordination are the key issue on the design of the organization structure. Specialization relates to division of labour and use of special purpose machines and equipment. Coordination means harmony in operations to achieve organizational objectives
Organizational structure shows different position and responsibilities attached to the post.
Types of organization structure
- Line organization
- Functional organization
- Staff organization
- Matrix organization
- Project organization
- Free form organization
- Committee organization h)
1) Committee organization
A committee is a group of persons constituted to deal with specific issues or problems of organization. Committee can also be considered as formal groups with a chairman on agenda and rules on conduct. Committee has specific tasks or set of tasks to achieve. These tasks are made frequently although not always associated with decision making.
As a formal group the formality of a committee is expressed by the following features:
- A chairman or chairperson who is responsible in ensuring
- That the committee is conducted in accordance with the rule
- The committee is supplied with necessary resources
- A secretary who is responsible for taking the minutes of the meeting standing out the agenda and other papers.
- An agenda which is set out the agreed subject of matter of the meeting
- The minutes of the meeting which are the official records of what has taken place
- Committee papers and reports which provides the committee with the quality of information which will enable it to make usual informed decisions or proposal
- Rules of procedure which are designed to promote the smooth running of a committee and ensure the consistency and fair play monitoring such rules includes procedures for:
- Speaking in a debate
- Proposing a motion
- Adding emergency to the operations of the committee as a communication medium.
Types of committees
- Standing and adhoc committees
The standing committee which is always present in the organization
Adhoc committee is a temporary special purpose committee which is appointed to deal with many specific problems or issues. It is disbanded and dissolved as soon as the assignment given is completed
ii. Executive and advisory committee
An executive committee s one charged with the responsibility of making and executing his decisions.
An advisory committee only remains as specific problem in all the details and makes recommendations
iii. Line and staff committees
A line committee is responsible for controlling and coordinating a specific business function having executive over the subordinate within a formal chain of command.
A staff committee only acts in advisory capacity having no authority in its decisions
iv. Formal and informal committees
A formal committee is constituted as per the organization policies and rules deriving its authority from the same policies and rules
An informal committee is not consolidated as per the formal policies or rules of the organization. It has no formal authority.
Advantages of a committee in an organization
- Discussion of proposal are based on group assessment of facts and ideas are not a very small grouped working in isolation
- Committee can encourage the proofing of special knowledge and talent possessed by individual members
- Precisely because they are organized groups, committee can undertake a large volume of work than individuals or vey smaller groups working in isolating
- Committee are very useful in achieving coordination and collaboration between worked groups
- Committees acts as a vocal point for information and customs within the organization
- It’s a tool of managerial strategy i.e. the committee may serve as important tool for delusion or consolidation of authority vested on a single individual or postponing
- It is a tool of training and development of the employee
Limitations of committee organizations
- Decision making is on hold together slower process when dominated by committee
- Committee works demand certain skills members who are unsure of themselves unskilled in committee practice tend to leave the initiative to the good committee members
- Committee sometimes have the tendency to be looked down in procedural matters which reduce the time avoidable for the decision of substantive issues
- Committee decision may often represent compromised solution rather than optimum solution
- Committee may represent the wishes of a certain group who one or more influenced and not necessarily the riskiness of the
MAKING COMMITTES EFFECTIVE
- The mandate of the committee needs to be clearly defined so as to keep the committee on
- Committees should have specific agendas to work
- The size of the committee should be appropriate. (not so large)
- It should have the right membership.
- The chairperson should be
- They should be provided with the necessary resources to accomplish their
- A committee should be provided with a reasonable
- A final written report should be presented by the committee for
- Members of the committees should not devote too much time on committee assignments and forget their regular jobs.
2. Matrix organization/ hybrid departmentalization
This is normally the combining of functional and project or product patterns of departmentation in the same organization structure. This kind of organization occurs frequently in construction e.g. building a bridge, in aerospace designing and launching a weather satellite, in the installation of an electric data processing system, in management consulting firms in which professional experts work together on project.
In case of a two year project to produce a modified fashion of standard air craft, one project manager will coordinate and be held accountable for the work to be undertaken by the project team, and he will be the person who deals on a regular basis with the clients.
Functional managers provide technical expertise and organizational stability. Project managers provide the drifting force and the day to day control required to steer the project its temporary life.
Guidelines for making matrix organization
- Define the objectives of the project/ task
- Balance the power of functional and project and project managers
- Clarify roles, authority and responsibilities of managers and team members
- Ensure that influence is based on knowledge and information rather than the
- Select an experienced manager for the project who can provide
- Understand organisation and team development
- Install appropriate cost, time and quality control that reposts’ derivations from standards in a timely
- Reward project managers and team members
- It’s oriented towards the end result.
- It helps to clarify who is responsible for the success of the
- It encourages functional managers to understand their contributive role in their organizations productive efforts.
- It leads to shorter project development time
- It pin points the project profit responsibility
- It combines the relative stability and efficiency of hierarchical structure with the flexibility and uniformity of an organic form
- Conflicts can arise concerning the division of authority and the allocation of resources between project groups and functional
- It requires money time and consuming meetings
- Too much shifting of staff from one project to another may hinder training of new employees.
- Relative dilation of functional management responsibilities throughout the organisation mega exist
- This type of organisation requires the manager to be more effective in human relational and to have interpersonal skills which is not always passed by all managers.
- Describe the factors that determine the degree of centralization and decentralization.
- Explain the benefits of
- Explain the factors that influence the span of
Staffing function is concerned with acquisition, development and maintenance of an efficient and satisfied work force in the organization.
It involves the recruitment training development and appraisal of personnel in the organization.
This staffing/personal management enables to contribute most effectively to the organization purpose in the performance of their duties, as well as to attain those personal and social satisfactions which they tend to naturally seek within their working environment.
Staffing is the acquisition and the maintenance of human resource necessary for the organizational success.
OBJECTIVES OF STAFFING
- To build and maintain cordial relations between people working at different
- To ensure effective utilization of available
- To provide fair working conditions, wages and amenities to
- To achieve the development of employees to their fullest
- To help other mangers in solving their personnel
FUNCTIONS OF THE PERSONNEL DEPARTMENT
The function of the personnel department can be divided into two:- Managerial Function
This is concerned with planning, organizing, directing and controlling the activities related to the human resources..
Operative Function This involves:-
- Record &
Also known as human resource planning manpower planning is the development of a comprehensive staffing strategy for meeting organizational future human resource needs. It is the process by which management determines how the organization should move from its present/current manpower position to its desired manpower position.
Through planning the management strives to have the right number and the right kind of people, at the right place and at the right time, doing things which result in both the organization and the individual receiving maximum long-term benefit.
Features of manpower planning
- It involves forecasts of the future manpower needs so that an adequate and timely provisions may be made to meet those needs
- The purpose of manpower planning is to determine the right number and the right type of people required for effectively accomplishing the tasks and goals of the organization
- It helps in ensuring effective utilization of present and future manpower
- It has two aspects i.e. quantitative and qualitative aspects
- It result in the development and policy programmes and procedures for the acquisition, development, preservation and utilization of organizations human assets
- It is a continuous process because the demand and supply of manpower are subject to frequent
Significance of manpower planning
- It helps management to avoid both shortage and surpluses of manpower and thereby to control labour costs.
- Manpower planning defines human resources required to meet the organizations objectives. By ensuring the right people at the right time, it contributes significantly to the success and growth of the
- It provides a sound basis for the selection and training of manpower
- A long term and systematic manpower plan is necessary to ensure a stream of qualified personnel flowing into the organization
- Manpower planning is important for an organization and an economy. At the firm level, it warns management of upcoming manpower shortage and surpluses. At national level, manpower planning helps to ensure optimum utilization of the country’s human resources, to maintain employment to improve productivity and to develop the human assets
- Inventory of existing manpower helps in ascertaining the status of the available personnel and to disclose untapped talent.
Objectives of manpower planning
- Making the best use of human resources
- Obtaining and retaining the quantity and quality of people an organization needs
- Being able to anticipate the future term of potential surpluses and deficit of people
- To promote and develop of existing personnel
- To provide control measures so that human resources are available when required
Importance of manpower planning
- Helps in correcting staff imbalances in time, thus management can reduce labour costs of overstaffing and under utilization of talents is brought to
- MPP provides a sound basis for development of personnel to make an optimum use of available
- MPP identifies gaps in existing manpower so that suitable training programmes may be developed for building specific skills required in
- MPP enables the management to cope with uncertain
- MPP involves an inventory of current manpower to determine its status and therefore untapped talents available in the organization can be
- Helps management to have the right people at the right jobs at the right
Manpower Planning Process
Manpower planning process involves four basic steps:-
- Assess current staffing needs. This involves assessment of the current jobs needed the organization, shortages and supplies should be identified in this
- Forecasting future human resource needs. A systematic attempt to probe into the future human resource needs should be done. This should put into consideration of the organization and also technological
- formulate staffing strategy
A staffing strategy should be formulated based on the needs of the organization.
- Implementation of the strategy
The strategy is adopted and put into use.
- Evaluate and update
The implemented strategy is monitored evaluated and updated to ensure that the goals of the enterprise are being met.
Job analysis refers to the process of determining the fundamental elements of a job through systematic observation and analysis. Job analysis occurs during the assessment of the organizational manpower needs.
It involves breaking up of a job into its basic elements and studying them in details to obtain all the pertinent facts about the job. e.g.
- what the worker is expected to do
- Methods and techniques used
- The working conditions
- Skills required. (Content, job duties and personal qualities)
Job analysis serves the following purposes.
- It provides a basis for MPP and for recruitment and selection
- Helps in matching the employee competencies and the job during selection
- Facilitates job evaluation and performance appraisal which is necessary in wage determination
- Helps in devising training and development programmes for
- Facilitates proper allocation of authority
- It facilitates job
The end result of job analysis is job description
This is a clear summary of duties and responsibilities of a specific job.
It describes the title of the job, its location, tasks to be performed and work conditions.
This is a statement of the minimum acceptable human qualities required for the successful performance of a job.
It specifies the physical requirements, education and knowledge, work experience, aptitude (ability to learn) and personal characteristic that one should possess in order to handle the duties of a particular job effectively.
This technique/process of establishing the relative merits of jobs within an enterprise in order to establish pay differentials
It involves the assessment of the work content of all jobs in the organization and their classification into broad categories called job grades.
Advantages of job evaluation
- Helps in selecting new staff
- Assists in transferring employees from one department to another
- Ensures that staff doing the same job receives the same rates of pay thus avoid wage
- Assist in evaluating new jobs and deciding on appropriate rates of pay
- May improve relationship between management and workers
- Provide data needed for collective bargaining
- May result in improved staff morale and thus low labour turn over and increased output
- Useful for estimating budgets.
Disadvantages of job evaluation
- It may place all jobs into few grades and reduce chances of promotion
- Job grades fails to take into account individual differences in workers abilities
- There is a tendency to view workers in terms of their grades
- Job grades are rarely evaluated while job content change time to
- Salary scales are not solely based on job grading but also other factors such as trade union influence etc
Describe the purpose of manpower planning in business organizations.
This is the acquisition of human resources to fill up particular positions in the organization
- Thus recruitment is to seek out, to explore to evaluate, to induce and to obtain commitment from prospective employees so as to fill up positions required for the successful operation of an
- Each organization has its own policies and procedures that guide the recruitment e.g.
- When to declare a job vacant
- When to advertise for the job
- The source of recruitment
- How to advertise etc
- Recruitment is very important because it increases the number of applicants from which a real choice can be
SOURCES OF RECRUITMENT
Sources of recruitment can be classified into two broad sources i.e.
- Internal sources
- External sources
- Education institutions etc
INTERNAL SOURCES OF RECRUITMENT
- Increases morale in the organization especially for the person being
- It’s easier to assess employees because you know
- it’s a form of rewarding good performance of work
- It is less expensive as it does not involve many procedures e.g. advertising short listing.
- There is no need for initiation/orientation as the person being recruited understands the procedures & operations of the
- There is a danger of inbreeding in the organization
- There may be a problem of morale for those who were not promoted
- It may create infighting for promotions which may affect
- It discourages the hiring of experts
- A strong manager development programme becomes necessary
- There may be need to retrain the employee so as to suit the new
Organizations do have policies that guide them on transfers and promotions in the organization.
For instance a good transfer policy should have the following characteristics.
- it should ensure that the transferred workers in their new positions are not given completely new kinds of jobs
- Responsibilities for recommending and approving transfers should be clearly defined.
- How a transfer is going to affect security of the employee should be spelt out clearly.
- Complete accurate job description of the jobs to which transfer are under consideration.
A good promotion policy should entail the following:-
- Promotions should be recommended by line managers and decided by their supervisors in line
- Likely opening for promotion should be given wide
- Accurate job description should be prepared for each
External sources of Recruitment
It involves acquiring manpower from outside the organization. The sources include:-
- Direct application from suitable candidates
- Through management consultants
- Academic institutions e.g. colleges, universities
- Employment bureaus and agencies
- Sister organizations
- Government departments
- Through recommendations and suggestions current employees
Merits of External recruitment
- It’s an inexpensive way of hiring qualified
- New blood is brought into the organization thus new insight
- There is no danger of inbreeding and
- There is a wider choice as the person is selected from among a large number of applicants.
Demerits of external recruitment
- The person selected might not fit well in the organization
- There is a longer orientation and initiation
- The person recruited may meet with resistance from the other employees
- There is a morale problem for those from within who have not chosen
- It may be time consuming and costly coz of the many procedures
This is informing the public about existence of a vacancy position in an organization. It is a usually done through the mass media or in meetings. The job advert should contain the following elements;
-Details of the employing organization
-Position to be filled
-Location of the position
-Key duties and responsibilities of the position holder
-Essential requirements of the job
-The minimum personal qualifications
-Deadline of submitting applications
-To whom the application should be directed
PRINCIPLES OF EFFECTIVE JOB ADVERTISEMENT
In order to make an effective job advertisement the following principles should be observed;
- Always provide brief but sufficient information about the position to be
- Give brief but sufficient information about the employing
- Provide details of all the essential personal
- Outline clearly the essential requirements of the
- Provide the main conditions of the position especially the
- State clearly where or to whom the application should be
- The advertisement should be presented in an attractive
Selection is the process of offering jobs to one or more candidates from among those who applied for the job.
It involves a series of steps which screens the candidates for choosing the most suitable person for the vacant post
Benefits of selecting the right kind of people
- Proper selection and placement of personnel go along way towards building up a suitable workforce. This in turn keeps the rate of absenteeism and labour turnover low.
- Competent employees will show higher efficiency and enable the organization to achieve its
- The rate of industrial accidents will be considerably low if suitable employees are placed on various
- When people get jobs of their choice and taste they get higher job satisfaction (contended workforce)
- Saves the organization time, money and efforts of having recruit and select incase where wrong selection was
Factors to consider when selecting employees: –
- Physical characteristics – sound body, limb, height, weight, sight etc
- Personal characteristics – age, sex, marital status, no of children, family background
- Proficiency/skills and abilities – qualification and past
- Competence – potentiality of an individual for learning and becoming proficient in a job. Capacity to acquire
- Temperament and character – emotional, moral and social qualities, loyalty etc high intelligence can never serve as a substitute for qualities such as honesty and trustworthiness
- Interest – without interest, work is colorless and monotonous. With interest work seems meaningful and
THE SELECTION PROCEDURE
The selection procedure usually varies from organisation to organisation and even from department to department depending on the position to be filled. The number of steps in the procedure and their sequence may also vary.
Selection procedure can involve the following process/steps.
- Preliminary interview
Most organizations start with preliminary interview. They are used to eliminate the obvious/unqualified candidates.
It offers advantage both to the applicant and organization as it saves time, costs and efforts of both the applicant and the organization. Only those who are suitable are allowed to fill the application blanks.
- Receiving Applications
When a vacant has been advertised or enquiries are made from suitable sources, applications are received from the candidates. This may be standard form or just ordinary application letters.
- Evaluation of applications
The application blanks and letters and curriculum vitae are evaluated as per the individual qualities and the vacant job. Only questions that have job relevance should be encouraged. E.g. education, work experience and other specific job relate data.
- Employment tests
Tests have become an integral part of the selection process. However certain conditions should be met of tests are to be used for employee selection they include:-
- A test should be reliable – provide consistent retort
- Should be valid – measure what they are designed to measure (e.g. job performance)
- Should be objective – can be interpreted by different people in the same way
- Should be standardized Advantages of tests
- They eliminate biasness in the selection personnel
- They can identify talents of individuals that can otherwise be
- Reduce the cost of selection and placement as a large number of candidates can be listed at the same place same
- Psychological tests can measure the aptitude of candidates and predicate their success.
- Provides health basis for comparing applicants’ background. Classification of tests
- Intelligence tests. They judge mental capacity of the
- Aptitude tests. They measure an applicant’s capacity and potential for
- Proficiency tests. This measure skills already acquired by the
- Personality tests. They measure the total personality of the
- Interest tests. This reveals areas that an individual shows special concern and involvement. This will suggest what type of job may be satisfying to
Interviews are the most widely used and probably the most important way of assessing the qualification of a candidate. They are able to obtain additional information, provide information about the firm etc.
Guidelines for effective interviews
- Plan for the interview (job specification & description)
- Create a good climate for the interview – friendly and open report with the applicant should be established
- Allow sufficient time for uninterrupted interviews
- Conduct a goal-oriented interview – irrelevant details should be left
- Avoid certain types of questions leading questions or those that may imply discrimination or embarrassing
- Seek answers to all questions & check for
- Record results of the interview immediately on
These are a series of job related questions with predetermined answers that are consistently applied to all the candidates for a particular post/job.
These are a series of questions asked by interview panels and which do not follow any format.
They have the following disadvantages
- Highly susceptible to distortion and bias
- Rarely job oriented
- Infringe on individual privacy
- Highly inconsistent
- The interviewee can only ask questions or look for details/qualities he/she likes and ignore the
Significance of interviews in the selection process
- Since the candidate is physically present, the interviewer gets an opportunity to study various aspects of his
- Mental and social make up the candidate is manifested in the
- Its cheaper and effective if properly planned
- Correct judgment of the candidate can be made
- Reference Checking
A referee is potentially an important source of information about candidate’s abilities and personality. Prior to final selection the prospective employer normally makes investigation on the references supplied by the applicant.
- Medical Examination
Physical and medical examination helps to determine if the applicant is fit for performing the job. Contagious diseases are identified.
- Placement on the
This involves making an employment offer. It involves assignment of duties and introduction of other staff members.
STAFF TRAINING AND DEVELOPMENT
Training implies the act of increasing the knowledge and skills required for efficient performance. The major purpose of development is to improve managerial behaviour and performance.
Staff development refers to the process of changing employee behaviour, altitudes and opinions through some type of guided experience.
Objectives of training
- Increase knowledge and skills of worker in doing specific jobs
- To impart new skills and techniques among the workers
- To bring about change in attitude of the worker towards fellow workers, supervisors and the organization
- To make workers handle materials, machines and equipments efficiently thus check on wastage of time and materials.
- To reduce the number of accidents by providing safety training to workers
- To prepare workers for higher challenges
- To make workers adapt to changes in the environment quickly
TYPES OF TRAINING
- Internal training (on the job training)
- External training (off the job training)
Internal training programmes
- Orientation/induction training
Is a type of training meant to adopt workers to specific job requirements? Most organizations have a formal orientation program for new employees who join the organization. Usually the new employees could be put under old or senior employees.
Reasons for induction training
- It helps to build up new employees’ confidence in the organization and himself so as to become an efficient
- Helps to develop a feeling of belongingness and loyalty to the organization
- Help to forge god relationship between newcomers and the old employees
- Helps to give newcomers necessary information in the organization
- Help to have a good impression of the organization
Apprentice is one of the oldest training methods. The worker is placed under a qualified senior who he/she understudies. The worker learns by observing and assisting his senior. It is common for trade jobs.
Is a process where by the superior assigning certain responsibilities and authority to his/her subordinates. The subordinate learns through performance of the job or duties delegated.
- Refresher training/retraining
This helps worker to learn new ways of handling things while still line their jobs. It also assists workers to refresh the knowledge and skill learned long time age. eg seminars, workshops etc
- Job Rotation
In job rotation employees perform more tasks on a given schedule. The objective of job rotation is to make workers conversant with different parts of their jobs. The worker may be assigned duties in different departments on work observe different departmental head.
- Membership to committees
Committees enable members to interact together, pool their experiences and ideas with an aim of solving problem. The committee members as a result to develop some problem solving skills
- Creation of “Assistant to” positions
A trainee is posted to a department as an assistant. He/she acquire actual managerial experience.
- Vestibule Training
It is similar to apprenticeship. The only difference is that the line managers on the job floor itself do not provide it. It is instead provided by special instructors outside/away from the job floor.
It has the following advantages: –
- Can be imported to a large number of people without affecting work at the work floor
- Relieve off the superior the responsibility of training
- Instructors are specialists and devotes full attention to training
- The trainees concentrate better as it’s away of self
Disadvantages of vestibule training.
- It is imported a place away from the shop floor so that trainees do not experience the problems arising from actual work situation.
- In the case of deficient performance by a worker, the line supervisor may blame the instructors and the instructor may blame the supervisor for ineffective
- It is costly because machines and equipments for training have to bought separately.
External training programmes
They include: –
- Training institutions
Specialized institutions offer training specific field e.g. colleges, universities, polytechnics
- Lectures, Conferences and seminars
These may be used to impart knowledge and develop analytical skills
- Case study
Workers evaluate and analyze a real life situation suggesting alternative solution to prevailing problems. Such analysis is used in solving problems at hand.
- Brainstorming sessions
This consists of evaluating of ideas put forward by a group of people convened for that particular purpose.
It encourage creative thinking among participants.
Members look forward brainstorming session as they enable them to talk freely. Their deliberations are oriented to problem solving.
- Role Play
It’s a training method under which participants assume certain role and enact them in a classroom situation. The others act as observers and critics.
It enables participants to broaden their experience by trying various approaches to a problem situation.
BENEFITS OF TRAINING TO THE EMPLOYER.
- Less supervision – Adequately trained employees will need less supervision as they are self reliant in work
- Economical operations.- well trained employees will use the organizational resources prudently as there will be less wastage of materials and low rates of accidents.
- High moral – training help to improve job satisfaction and morale of workers. Their attitude toward the organization will also change
- Uniformity – training enhances uniformity of procedures as the best method of performance can be standardized and taught to all employees.
- High productivity – when skills of the employees are increased the performance of the employee is enhanced in term of quality and
- Manpower development – training enables the organization to have a study supply of competent people to fulfill the organization’s human resource
- Less learning period – training helps to reduce the learning time to reach acceptable level of performance
BENEFITS OF TRAINING TO THE INDIVIDUAL
- Training creates a feeling of confidence in the mind of the
- Training enable an individual acquire new skill which are an asset for the individual
- Trainings provides opportunities for quick promotion and self development
- Trained individuals are likely to earn more
- Trained individuals handle machines safely and are less prone to accidents
- Training and develops adaptability among
People spend a great deal of their time on job. This is the process of deciding the content of a job in terms of its duties and responsibilities, work methods and on the relationship that should exist between the jobholder and his superiors and subordinates.
WAGES AND SALARY ADMINISTRATION
This section is concerned with the dues paid as compensation for work performed. Policies with regard towages and salary administration should be a vital component of the personnel policy of the organization since it will enable the organization to attract capable and competent individuals and also retain them in the organization.
A good personnel compensation policy should cover the following elements
- Level of adequacy of payment
- Equity in wage payment
- Recognition of efficiency
- Incentive payment
Compensation may take different forms:
- These are compensations paid to workers for task performed over a short duration.
- This is labour compensation paid out once a month
Factors determining labour compensation
- Cost of living
- Wages parity/market rates
- Employer paying capacity
- Degree of unionization
- Performance efficiency of the employee
- Government regulation
- Availability of worker for the particular job
METHODS OF LABOUR COMPENSATION
- Time Rate
This refers to fixed compensation for a particular period of time e.g. week, a day or month or even hours. This method has the advantage of:-
- Wages can be calculated easily
- Employee is assured of pay at the end of the
- It eliminates the need for measure performance
- Suitable for jobs that cannot be divided into smaller
- Piece Rate
This refers to a fixed compensation per unit of output
This method motivates efficient workers and reduces the level of supervision in the organization
- Commission Rate
This refers to compensation based on the % of sales made. It’s more common in insurance and travel agency businesses.
- Bonus Rates
This refers to labour compensation whereby one work on time rate but any extra production or overtime worked, a higher rate is paid.
STAFF WELFARE & BENEFITS
This refers to any service or amenities provided to the employee. This includes:
- Transport services to and from work
- Staff housing plan
- Staff canteen/ rest
- Incentive tours
- Staff get-together/
- Credit plan t.c.
Staff welfare services serves to ensure that employees are as comfortable as possible at the work place.
It is essentially about reaching compromises in the face of conflicting interests, whereas participation, is about reaching optimum decisions on matters of common interest.
Collective bargaining is carried out by employers and trade unions.
Collective bargaining can be used to be a private process of negotiation between union and management aimed at settling disputes before they turn into conflict and industrial lobour unrest.
Negotiations here are supposed to submit disputes to mediation or arbitration. Mediation is an attempt to settle disputes through a neutral third party. The mediator may be a professional acceptable by both the union and the management.
Arbitration is the process by which a grievance or dispute is dissolved by an important third party.
Arbitration takes two types:
- Conciliators – where both the management and the union agree to call for 3rd
- Compulsory – where the law provides for a 3rd party to
Types of collective bargaining relationship
One of the important factors that determine the relationship between the union and management is the attitude of management towards unions.
- Power bargaining
- Armed truce
Under this, strategic management takes totally uncompromising views attitude, the
management adopts the old western movie phase the only good union is “a dead one”.
The management representative take the position thus the vital interest of the company and the union is poles away and will always be so.
However the management realizes that the union is not likely to disappear and so will not force a head on collision.
The management realizes also the power of the union, the management tasks is to impose its power and then use their power where possible to offset the power of the union.
Accommodation involves learning to adjust to each other and attempting to minimize conflicts to conciliate.
This strategy in no way suggests that management goes out of its way to help organize labour.
It involves full acceptance of the union and an active partner in a formal plan is a relatively rare occurrence in cooperation, management supports not only the right but the desirability of union participation in decision making.
This is a form of mutual service monopoly and is unconcerned with interest except under the collusion strategies where the union and management engage in industrial price fixing designed to inflate wages at the expanse of the general public.
The process of collective bargaining
The process of collective bargaining contains a number of stages however, over time each union and management develop slight modification that are necessary for effective bargaining to occur.
Both labour and management representative spend extensive time preparing negotiation to follow. Data on wages, working conditions, management and union rights, benefits, productivity and absenteeism is gathered and analysed. Each party outline its priorities and tactics to use to get what they want.
These are expectations of either party presented during negotiation.
Each party attempts to determine what this other party (side) values highly and to reach the best bargaining possible.
Labour and management do not reach an agreement always on all issues. In such case dead lock cases may result on strikes by the union or lock out by management.
Settlement and contract
After initial agreement on the issue being negotiated the two parties usually return to their constituencies to determine if what they have generally agreed on is acceptable.
The crucial stage thereafter, negotiation is ratification or getting a vote of acceptance. After ratification of the agreement then the agreement is formalized with a contract.
This describes the formal relationship between employers and trade unions or other groupings of employees together with the institutional arrangement which arise from these relationships.
Industrial relations attempts to bridge the gap between management goals/employers goals and the goals of the employees.
Objectives of industrial relations
- To safeguard interests of labour and management by securing understanding
- To avoid industrial conflicts and develop harmonious relationships
- To raise productivity
- To establish and nurse growth of industrial democracy
- To eliminate possible strikes
- To establish government control over such plants which operate at losses
Significance of Industrial Relations
- Smooth industrial relations help secure economic progress
- It helps establish and maintain true democracy
- Results in collective bargaining
- It helps the government in framing laws
- Results in less number of disputes in the organization
- Promote orderliness
PARTIES INVOLVED IN INDUSTRIAL RELATIONS
In industrial relations three parties are involved,. The workers represented by trade unions, the employers represented by employee associations or management and the government as the arbitrator.
The agreement reached by the three parties is usually referred to as a triplet agreement.
They represent the interests of the employers e.g. Association of Kenya Manufacturers, Federation of Kenya Employers (KFE)
Function Employers Associations
- Represent employers in collective bargaining
- Develop machinery for avoiding industrial disputes
- They provide information and advice on employee’s
- Represents employers on national issues.
This refers to an association of workers whose major aim is to protect and promote the interests of members, through collective bargaining with the management/employers and sometimes in presence of the government.
Functions of trade unions
- They demand for higher wages for their members
- They demand for better working conditions for members
- Protect members against unfair dismissal and victimization
- They educate the workers on their rights
- They serve the interaction function with other trade unions in the field which improves their bargaining power
- Serves the political function i.e. can be used as stepping stone to ones political ambitions.
Types of Trade Unions
- Company unions – comprises employees of only one organization
- Craft unions – covers workers with a particular skill irrespective of the organization.
- Professional unions – caters for people in the same profession g. doctors./teacher, lawyers etc
- General union – cater for workers from various fields occupations and organizations e.g. O.T.U.
Factors that have slowed down union growth
- Political dominance and influence
- Existence of about surplus
- Lack of sufficient funds to run union offices incase of strike
- Multiplicity of trade reduces their bargaining
- Legal restriction which makes it difficult to organize strikes
- Hostile attitude of the employers whereby they don’t want to hear anything about trade unions
- Lack of good organization due to poor leadership
- Poor policies inherited from colonial government
- Lack of awareness on the part of the
ACHIEVEMENTS OF TRADE UNION
- They have fought for revision of minimum wages and better working
- They have successfully challenged management power to dismiss employees
- They have provided to their members security and protection from
- Have been able to train their workers on labour
- Closed shop – it arrangement whereby organization only employ workers afflicted to unions.
- Union shop – is whereby a compromise is made between the unions and employer in the employer can hire can hire anyone whether union member or not provided he/she joins the union at a particular time
- Preferential union shop- here an agreement is made between the worker union and employer first to hire union members before considering other job applicant. Incase of layoff, members are laid of
Advantages of trade unions
- They help to negotiate with the management instead of the whole labour force on behalf of the
- The play a vital role in determining wages of the
- They help employees to have job satisfaction.
- They help to maintain uniform wages throughout the
- They have a professional approach in handling disputes between workers and management.
- They are of help to management because they help in avoiding unnecessary disruption of workers and settle
Disadvantages of trade unions.
- Some unions have been too powerful for the members thus they are specialized to huge salaries which their employers may not be able to
- The union uses workers in order to achieve some selfish goals and this results in some optimal
- The unions have known to cause workers to support their opinions and therefore call for strikes not for the workers grieves but because of the policy of the
- The union tend to encourage inefficiency especially when they negotiate for higher wages and other benefits in comparison to the input of the
CENTRAL ORGANISATION OF TRADE UNIONS (COTU)
It was established in 1966 as a result of the ministerial committee set up to communicate/ investigate the activities of trade unions. It was also as a result of the strike in the year 1963 by the Kenya distributing workers union.
COTU is headed by a secretary general.
OBJECTIVES OF COTU
- To improve economic and social conditions of all the workers in all parts of Kenya and to render to the assistant whether or not such members are employed or all ceased to be
- Assist in the complete organization of workers in all Trade unions movements in Kenya.
- Organize the structure and spheres of influence among nations of trade unions officiated with
- Assist in settling disputes between members of the trade unions and the employers or between the trade unions and their or between two or more trade
FUNCTIONS OF INDUSTRIAL COURTS
- Promotion of harmonious industrial relations in the
- To ensure compliance with labour laws, international labour standards and codes of practice as well as review of labour standards and domestication of international conventions and
- Promotion of best practices of occupational safety and health in all
- To plan, development and promotion of effective utilization of human
- Judicial determination of trade disputes and judicial and registration of collective bargaining agreements (CBAs)
- Facilitation of the development of micro and small
- Provision of labour market
- To ensure availability of skilled manpower for the
- Promotion of productivity improvement.-Provision of social security through National Social Security Fund (NSSF)
The personnel department keeps records which are necessary to help the top management in the formulation of appropriate personnel policies and procedures.
The records need to be:
The data collected by the department helps in finding solutions for personnel problems such as absenteeism, labour turn over etc.
Information provided include: –
- Personal data
- Position and experience
- Salary scale
- Medical background
- Record of absenteeism
- disciplinary letters
- Promotion letters
- Labour turnover
- Industrial accidents
- industrial disputes
Usually individuals have individual files in which information that relates to a particular person is kept.
USES OF PERSONNEL RECORDS
- It helps in promotion and transfer of employees
- Its necessary for salary and other computation of other benefits
- Indicates when individuals leave is due
- Help in formulating inventive plans and other strategies to correct personnel problems
- Serves as evidence and references in court of law
- Serves as reference when handling staff disputes especially in collective bargaining
- It is a legal requirement that organization keep
This refers to the number of employees that leave the organization within a specified period. It’s expressed as a percentage
For example. No of leaver x 100
No of employees
CAUSES OF LABOUR TURNOVER
Causes can be internal or external
Internal causes of labour turnover. e.g.
- Low wages
- Unsuitable work or working conditions
- Inability to perform
- Breach of discipline External causes of labour turnover. g.
- Lack of transport
- Retirement age
- Natural attrition
- Health reasons
- Explain the benefits of recruiting the right people in an organization
- Outline the principles of job
- Describe the selection
- Explain the Reasons why organizations conduct induction training
- Outline reasons why trade unions in developing countries have not been
By the end of this sub-module unit, the trainee should be able to:
- explain the meaning of leading/directing function
- describe the various leadership styles
- explain various motivation theories
- explain the importance of coordination in management
- explain the importance of communication and supervision in management
Directing literary implies moving into action. When any administrative decision is taken, it must be converted into action by proper implementation otherwise it is of use.
DEFINITION OF DIRECTING
It is the function of management that involves instructing, guiding and inspiring human factor in the organization to achieve organizational goals.
It covers the following elements
- Communication/ supervision
PROCESS OF DIRECTION
The process of directing should include the following steps:
- Determine what is to be
- Issue specific orders and precise
- Provide guidance and
- Motivate the
- Maintain constant communication with
- Maintain discipline and reward those who perform
- Provide effective leadership to the subordinates so that they work with
PRINCIPLES OF DIRECTING
- Effective leadership-focused and
- Direct supervision – personal contact with subordinate.
- Unity of command-an employee should receive directions from only one
- Harmony of objectives – between individuals & group
- Strategic use of informal
- Principle of follow
- Managerial communication – two-way
This is an act of stimulating someone or oneself to get a desired course of action. It is that inner state of mind that channels workers behavior and energy towards the attainment of desired goals.
Factors Affecting or Determining Motivation
- The Nature of the job: – A job that is challenging and good enough will motivate an individual and use
- The Work environment: – When the work environment is conducive, worker will be motivated e.g. a spacious office will motivate an
- Participation in planning: – When employees are given an opportunity to participate in planning & implementation the highly
- Better reward system: – When the employees are well compensated they become more
- Security: – When employees are provided with security at work and have security of tenure, they are highly motivated.
- Recognition by management: – When the management recognizes the efforts of the workers, they will be highly
- Trust and loyalty: – When there is trust and loyally between the subordinates & the management motivation becomes high in the
- Room for advancement. : – career growth and
- Delegation of authority: – transfer of authority from upper to lower
- Good management
Importance of Motivation
- Through motivation high performance in the organization can be
- Motivation enhances willingness of people to work thus minimizes conflicts and resistance to
- Sound motivation minimizes chances of absenteeism and labour
- Increases motivation reduces the need of close supervision which may be expensive to the organization
- Effective motivation leads to cordial relationship between workers and management, as there is increased job
- Good motivation may lead to improvement of skills of individuals within the organization.
Methods of Motivating employees
A motive is a need or driving force within a person. The management can motivate their employees through:
- Fair remuneration – Fair & reasonable reward for the services
- Incentives – Bonuses, pension scheme & profit sharing
- Security of tenure – Assure continues employment
- Good working conditions- working hours, medical,
- Participation- In decision making
- Communication – Adequate upward & downward
- Safety programmes – Compensation / hospital expenses
- Health programmes – protection against health hazards
- Education & development
Features of a Sound Motivation Programmes
- It should be productive – Must result into positive increase of productivity of labour.
- Must be competitive – The costs of the motivation system /programme must be justified in its
- Should be comprehensive. It should provide for both physiological and psychological need and cover all employees at all
- Should be flexible – It should be capable of being adjusted easily in case of changes in the environment and
- It should be acceptable to the
- It’s a psychological concept i.e. its concerned with intrinsic forces operating within an individual which compels him to act in a particular way. A motive is a personal and individual
- It is dynamic and continuous process i.e. it deals with human beings which are error changing and modifying themselves every moment with their needs being unlimited.
- Motivation is a complex and difficult function. In order to motivate people a manager needs to understand and satisfy a multiplicity of human needs, but needs are mental feelings which cannot be described and measured accurately. They are vague and have to be deduced from external behavior of needs. Moreover needs are basically
- It is a circular process- feeling of unsatisfied needs causes tension and an individual takes action to reduce these
When the needs are satisfied, tension is removed and the person feels inspired to work in a particular direction. This in turn leads to revaluation of the situation and the birth of the new ideas or needs.
- Motivation is different from satisfaction- motivation is the process of stimulating an individual or a group to take a desired action. Satisfaction implies contentment arising from the satisfaction of the need. Motivation is the drive towards an outcome whereas satisfaction refers to the outcome experienced by person.
A person feels motivated when the available incentive lead to satisfaction of his needs. The following are steps in motivation process
- Awareness of needs
When a person realizes a need or motive that is not satisfied, it creates tension in his minds. Thus motivation process starts with awareness of a need.
- Search for action
The person looks for suitable action to relieve his tension and satisfy his needs. He thus develops certain goals and attempt to fulfill them.
- Fulfillment of needs
The suitable action is undertaken and therefore the need is satisfied or fulfilled.
- New need
Once the need has been satisfied, another need begins to dominate the mind.
THEORIES OF MOTIVATION
Motivation theories are divided into three main categories:-
- Content theory
- Process theory
These theories attempt to explain the specific things that actually motivate an individual at work. They are concerned mainly with identifying people’s needs, their relative strength and the goal people pursue in order to satisfy their needs.
These theories include: –
- Abraham Man slow’s hierarchy of
- Harzbergs two factor
- Alderfers modified need hierarchy ERG (Existence need, Related need and Growth need)
- Mc Cleland achievement motivation
These theories concern themselves with identification of dynamic variables that makes up motivation. Mainly process theories focus on how behavior is initiated, directed and sustained. These theories include:-
- Expectancy based model of Vroom .
- Lawler’s and Porter equity
ABRAHAM MASLOW NEED HERARCHY OF NEEDS THEORY
Maslow developed a theory of motivation on the basis of human needs. The main arguments of Maslow’s theory are:
- Man is a perpetually wanting animal and his needs are never fully satisfied. The moment a need is satisfied another one starts to dominate the minds of an individual.
- Human needs differ in importance and therefore can be arranged in a
- An individual need in the hierarchy emerge only when the lower level needs are reasonably well
- Satisfied needs to not motivate
- Lower order needs are more fifth then higher level needs
Maslow’s studies into human motivation led him to propose a theory of needs based on a hierarchical model with basic needs at the bottom and higher needs at the top.
These needs are as follows:-
- Psychological needs
These are the needs for food, drink, water, sleep, clothing and shelter. These are for the survival of human life. They are the most basic fundamental needs and must be satisfied by all other needs.
A man live by bread alone where there is bread, personal satisfaction of these needs is essential for the presentation and efficient operation of human body.
An organization can help individuals satisfy their needs by providing good pay, proper working conditions and other benefits.
Characteristics of physiological needs
- They are relatively independent of each
- They can be indentified with specific location of the
- To remain satisfied, they must be met repeatedly within a short
- Unless these needs are satisfied to the degree necessary to sustain life other needs will not motivate
- Safety /security needs
This is the need for stale environment relatively free from accident, fire, murder, threats e.t.c. it also touches an aspects of economic security, unemployment, theft, sickness and disability. An organization can influence safety needs either positively by providing (job security, pension plans, insurance plans, safety and healthy working conditions).or negatively by growing fear of being fired or laid off through management action.
- Love needs/ social needs
Man is a social being; therefore he has the needs of belonging and be accepted by others. Social needs includes need for love and affection, association and acceptance by various social groups an organization can help achieve social needs through group decision making, team building activities, engagement in corporate social responsibility and sporting activities.
- Esteem needs
These are needs for self fulfillment, self confidence, feeling of personal worth and independence, esteem for others i.e. recognition, status, power, prestige achievement e.t.c.
An organization can help to satisfy such needs through job titles, praises, promotion, performance appraisal, provision of spacious offices and prestigious packages given to employees.
- Self-actualization needs
These needs according to maslow emerge after all other needs have been satisfied. Self actualization need needs include the realization of one’s potentialities, self fulfillment, self development andf creativeness. This refers to the needs for becoming what one is capable of becoming and for accomplishing more and more.
The form these needs take varies from person to person just as human personalities vary.
Self actualization can be satisfied through any of these ways, athletics, politics, academics, family, religion, hobbies or business.
The most and central point of Maslow’s theory is that people tent to satisfy their needs systematically starting with the basic physiological needs & then moving up the hierarchy until a particular group of needs is satisfied, a persons behavior will be dominated by them. Thus a hungry person is not going to be motivated by consideration of safety or affection, until after his hunger as been satisfied.
Maslow’s later modified this argument by stating that there was an exception to the rule in respect of self actualization need. For this group of needs, it seems that
satisfaction of need gives rise to further needs for realizing one’s potential.
MC GREGOR’S THEORY X AND Y
Mc Gregor has classified the basic assumptions about human nature into two parts. Theory X and theory Y.
This is based on the assumption that people don’t want to work and are forced to work. It assumes that:
- The average human being has an inherent dislike of work and will avoid it if he can (lazy)
- He lacks ambition, dislike responsibilities and prefers to be led-incapable of directing his own behaviour & is not interested in achievement (lack creativity)
- People are inherently self-centered and are indifferently to organizational
- People are naturally/ by nature resistant to change thus have a conservative nature.
- People are not by nature very bright and are prove to be influenced by
- Motivation only occurs at physiological and safety
Under this theory people love work and enjoy it .The theory assumes:
- Work is as natural as play or rest provided the conditions are
- The average human being love work provided it’s meaningful and can be a source of
- Commitment to objectives of an organization is a result of the rewards associated with the
- The average human being is dynamic and adopts to change when is brought in a logical
- The average human being love
- People are creative and self-directed.
Management under theory X
- They should be directly supervised and controlled
- They should receive specific instructions, written where possible
- They should be given deadlines
- There should be close communication between the management and employees
- They should not participate in decision making at any Management under theory Y
- People should be involved in decision making
- Delegate work to them
- They do not need to be coerced.
- No close supervision is needed
- Recognize their contribution and reward them appropriately
HERZBERRG’S TWO-FACTOR THEORY
(Motivation hygiene theory)
Hertzberg collected data on job attitudes through interviewing engineers and accountants. He concluded that there are two categories of needs that are independent of each other and affect behaviour in different ways.
When people feel dissatisfied with their job they were concerned by the environment in which they job, this had to do with the job itself.
- Hygiene / dissatisfiers
They tent to being job dissatisfaction. Their removal or making them favourable does not motivate work or improve production but only reduce dissatisfaction.
- Administrative polices
- Working conditions
- Interpersonal relationships with supervisors
- Job security Status
- Money /Salary
These are factors, which improve on motivation of individuals. They build strong motivation. There absence does not cause dissatisfaction but bring about a condition of not satisfied.
They include: –
- Recognition for accomplishment
- Feeling of achievement
- Challenging work
- Increased Responsibility
- Opportunity for growth
Motivators are job centered, inherent to the job while hygienes are extrinsic. The theory highlights that the most effective technique of intrinsic motivation in job enrichment.
The theory also points out that the opposite of job satisfaction is not job dissatisfaction but no job satisfaction. Likewise the opposite of job dissatisfaction is not job satisfaction but job dissatisfaction.
ALDERFERS MODIFIED NEED HIERARCHY (ERG,Exisistence need, Related need, and Growth need.)
Alderfers condenses Maslow’s five levels of needs into three levels based on the core needs of existence, relatedness, and growth.
Existence needs are concerned with sustaining human existence and survival and cover Maslow’s physiological and safety needs. They include all the various forms of material desires such as food, water, pay and good working conditions.
Relatedness needs are concerned with relationships to the social environment and cover love, belonging, affiliation, and meaningful interpersonal relationships of a safety or esteem nature.
Growth needs are concerned with the development of potential and cover esteem and self actualization.
MC CLELLAND ACHIEVEMENT MOTIVATION
He said that human beings have three basic needs (motivational) power, affiliation and achievement.
Power is shown in strong desire to alter the course of events.
Affiliation is need for friendship, love, and group approval.
Achievement is shown by desire to succeed not to fail.
He found out that scientists, business men and professionals have above average desire for achievement motivation. He suggested that a person with high achievement motivation possesses certain characteristics.
- He prefers tasks in which he can take personal responsibility for the
- He sets moderate goals and takes calculated
- Wants precise feedback concerning his successes or
V room models
Victor H Vroom holds that people will be motivated to do things to reach a goal if they believe in the worth of that goal and if they see that what they do will help them in achieving it.
Vroom theory is that people motivation towards doing anything will be determined by the value they place on the out come of their effort (whether positive or negative) multiplied by the confidence they have that their effort will materially aid in achieving a goal.
In other words Vroom make the point that motivation is the product of anticipated worth that an individual place on a goal and the chance that he or she sees of achieving that goal.
Porter and Lawler model
Their model is based on assumption that rewards cause satisfaction and that sometimes performance produce rewards.
They made the hypothesis that satisfaction and performance are linked by rewards. They see good performance leading to rewards which are either be intrinsic or extrinsic.
Intrinsic rewards are given to the individual by himself for good performance and they include: – feeling of accomplishment and satisfaction of higher level needs.
Extrinsic rewards are given by the organization and they include pay, promotion, job security, good working condition etc.
1. Participation in planning
When employees are given a choice to plan their own work and contribute in organizational planning, the plans, are more acceptable to them.
2. Challenging work
When work is not challenging, boredom sets in and this is likely to cause laziness and dissatisfactions at the place of work
3. Recognition of status
Most people want approval by peers, friends or supervisors. Benefits that show status may increase motivation.
4. Authority, responsibility and power
Some people are motivated greatly by being responsible for the work of others. Many people stay in the organization with the hope of rising to upper levels
5. Independence to action
Being allowed to work without close supervision motivates a person.
This includes financial and non financial incentives that are given to the employee will be motivating
People are motivated by upward mobility in their job
8. Personal growth
People want to grow wholesomely both in aspects related to the job of those outside the job
This is a term used to describe the overall climate prevailing among workers. Its an attitude of a satisfaction with desire to continue in willingness to strive for goals for a particular enterprise.
Lack of morale can result in:-
- Increased cases of Absenteeism
- Antagonism towards rules and supervision
- Excessive complains & grievances
- High labour turnover
- Friction between employees and the management or the employer
- Lateness at work
- Increased accidents at work
- Alcoholism as a result of frustration
According to Chester Barnard, leadership is the ability of a supervisor or manager to influence the behavior of his subordinates and persuade them to follow a particular course of action.
IMPORTANCE OF LEADERSHIP
- Efficient leadership motivates the members of
- Efficient leadership helps in directly group activities.
- Leadership helps to reduce resistance and conflicts in the
- Good leadership assists in bringing change and increase interpersonal communication.
- Leadership ensures cohesiveness among group
- Leadership helps to develop talents of
- Good leadership enables optimal utilization of the organizational
THREORIES OF LEADERSHIP
- Trait theory
According to this theory leadership behaviour is the sum total of the traits that an individual posses. A successful leader must therefore posses certain tracts or qualities. These qualities include:-
- Initiative and
- Open mind
- Self confidence
- Vision and foresight
- Sense of responsibility
- Physical fitness
- Situational theory
According to this theory, leadership is a function of the situation in which the leader works & emerges. It argues that a leader may be successful in one situation and fail in another.
- Behavioural theory
According to this theory, leadership is a function of effective role behaviour. A leader should posses’ favourable leader behaviour to inspire and guide subordinates.
- Autocratic / Authoritarian Leadership
This is whereby power is highly centralized. The subordinates are not allowed to make or participate in decision-making.
An acrobatic leader demands complete loyally and unquestionable obedience from the subordinates.
Advantages of Autocratic Leadership
- Tasks are accomplished on
- Decision-making is not
- Communication is fast Disadvantages of Autocratic Leadership
- There is social distance between the leader & the being
- May lead to high labour turnover because of job
- Members lack commitment to organization
- The work may not be effectively done in the obscene of the
- Workers initiative is
- Democratic /Participative Leadership
This is a subordinate centered leadership whereby the leader involves the total participation of the subordinates in decision-making process. He leads by consent of the group rather than by use of authority.
Advantages of Democratic Leadership
- Effective consultation between the leader &
- Effective delegation since then is trust confidence between sub & the
- There is openness &
- High motivation within workers leading to
- High productivity & quality of
- New ideas & change are
- Open communication. Disadvantages of Democratic Leadership
- Decision-making is time consuming since a lot of consultation is
- The job may not be perfectly done, as the leader may not be able to oversee directly.
- Concept may develop due to
- Some workers may take advantage of the freedom and trust given to
- May allow for even unfair critism by the workers
- Over delegation may lower the quality of work
- Pseudo Democratic or Manipulative Leadership
This leader makes his desires known & then appoints a committee to deliberate but primarily to approve his proposal.
Group members go through the nation of cooperative action but to no avail since the decisions have been reached before hard.
The leader may be very successfully being tolerated when he rewards those who support him.
- Bureaucratic Leadership
The leader depends upon the rules and regulations developed by him. The rules specify the functions and duties of every member of the organization. The leaderships therefore reduced to a routine job. There is limited scope pr initiative and subordinates like to play. The leader is centered leading to total inefficiency.
- Laissez faire/ free rein
Under this type of leadership, the leader leaves it to subordinates to decide and controls themselves believing that they are competent and motivated. He does not lead and avoids using power.
He leaves the group to itself. He rarely acts or takes a consultancy position of the group without any influence of authority.
He does not interfere in the activities of his subordinates. He believes that people will perform better if they are left free to make and enforce their own decisions. Such a leader may be successful where the subordinates are highly competent and fully dedicated to the organization.
- Charismatic Leadership
This is where the leader has total loyalty and support of the subordinates. It may be as a result of special qualities that he/ she posses and as such the followers strongly believe in his/her ideas. A Charismatic leader posses natural, inborn unique traits and attributes that distinguishes him/her from other leaders. He may be kind, forceful, persevering, sincere, humble, etc.
LEADERSHIP STYLE ACCORDING TO LICKERT
Likert has classified leadership styles into four types. They include:
- Exploitative / Authoritative
This is a system that is highly autocratic. It has very little trust in subordinates. People are motivated through fear and punishment with occasional rewards. Communication is downward and decision-making is limited to the top.
- Benevolent Authoritative
The manager has patronized confidence in the subordinates and motivates with some rewards some fear and punishment. The manager permits some upward communication and solicits some ideas and opinions and also allows some delegation of decision making but with close policy control.
- Consultative Leadership
The manager has substantial but not complete trust and confidence in subordinates. He tries to use subordinates ideas and opinions and he use rewards for motivation with occasional punishment. Upward & downward communication is allowed and the general policy is made at the top, but specific decisions are made at lower levels.
- Participative Leadership
The leaders have complete trust and confidence in subordinates. He gets ideas and opinions from the subordinates. Rewards are given on the basis of group participation. Subordinates engage in communication and also in decision making throughout the organization.
Factors affecting effectiveness of leadership/ choice of leadership style:
- Factors related to the manager
- Self knowledge and experience
- Managers personality
- Academic and professional background
- Personal capacity
- Managers values
- Managers goals and aspirations
2. Factors related to subordinates
- Attitude towards authority
- Their work ethics
- Maturity level of subordinates i.e. task related maturity and not age
- Employment value system
- Workers experience and skill level
- Employees academic and professional background
- Employees expectations
- Employees need for independence
- Employees loyalty to the organization
3. Factors related to the situation
- Size of work groups
- Task structure
- Objective of the organization
- Leadership styles of the managers/ suppliers
- Leader subordinate relationship
- Whether or not the company has a trade union
- Impact of technology
Communication is commonly defined as the process by which a person (sender) transmits information (message) to another (receiver).it’s the transfer of information, ideas, understanding or feelings between people.
An organization must keep in touch with its environment e.g. customers, suppliers the government dealers etc.
The purpose of communication in an enterprise is to effect change i.e. to influence action towards the welfare of an enterprise. Communication is essential for the internal function of the enterprise, because it integrate the managerial functions.
Communication is especially need to:-
- Establish and disseminate the goal of an enterprise.
- Develop plans for achievement of an organization
- Organize human and other resource in the most effective and efficient
- Select, develop and apprise members of the
- Lead, direct, motivate and create a climate in which people want to
The process traces the movement of information from the sender to the receiver. The process has the following elements of steps:-
- Sender – This is anyone who wants to communicate something to someone else. The sender has a thought or an idea which must be put into a language understood by the receiver and the sender (encoding).
- Message – This is the information the sender wants to
- Channel / media– This is the link between the sender and the receiver of the message. It refers to the model of transmission of the message e.g. a letter, telephone, television, a computer, gestures etc
- Receiver – This is the person the sender wants to react with the message. Once the receiver gets the message he/ she must decode it. This is the process by which the message and attaches meaning to
- Feedback –The action taken by the message receiver once the message has been conveyed. Its only trough feedback that the sender can know the process was successful
Communication process is represented diagrammatically as follows
NOISE HINDERING COMMUNICATION
Unfortunately communication is affected by noise which is anything / whether in the sender, the transmission that hinders communication, for example:-
- A noise or a confined environment may hinder the development of a clear
- Encoding may be faulty because of the use of ambiguous
- Transmission may be interrupted by static in the channel, such as may be experienced in poor telephone
- Inaccurate reception may be caused by in
- Decoding may be faulty because the wrong meaning may be attached to the words and other
The process of communication is affected by many situational and organizational factors. Factors in the external environment may be; Educational, sociological factors, legal factors, political factors, economic factors etc.
Communication is also affected by internal factors such as structure of the organization, managerial styles changes in technology etc.
TYPES OF COMMUNICATION
Communication in an organization is either internal or external. In an effective organization, communication flows in various directions i.e. down word, up word or crosswise. This various types of communication in an organization may include:-
1) Types of communication according to flow of direction
- Vertical up word communication
In this type of communication, the information flows from the lower levels (subordinates) to the higher levels (superiors) trough the chain of command.
2. Vertical down words communication
In type of communication, information flows from the higher levels (superiors) to the lower level (subordinates). This type of communication exist especially in organization with an authoritarian atmosphere
3. Direct horizontal communication
This involves an individual from one department communicating to another person in another department at the same level
4. Indirect communication
This communication occurs between people of different organizational levels of different department
2) Type of communication on the basis of relationship between the parties in the organization
- Formal communication
This type of communication follows the course laid down in the organization structure of the enterprises. Members of the enterprise are supposed to communicate with each other strictly as per channels laid down in the structure.
b) Information communication
In this type of communication the transmission of information is not through any structure or any pattern of relationship provided in the organization. This type of communication is through the grapevine where there is no approval of the management.
Types of communication on the basis of the method used
- Written communication
This is the form of a letter, memos, manuals, or minutes. In a formal organization such as a business enterprise, written communication is the most important media for conveying ideas, information etc.
b) Oral/ verbal communication
This provides immediate feedback and unclear issues can be clarified immediately. It gives communication a personal and intimate touch. Verbal communication can be in the following forms:-
- Face to face
- Joint consultations.
- Public communication which may be used to announce a policy decision of workers.
- Broadcasts which relates to statement from the management to the staff generally or to certain section of it also relates to public announcement and communication address to
c) Non verbal communication
In this form of communication, gestures rather than words are used to convey feeling of emotions. Facial expressions, postures, gestures, tone of voice and other body movements are made
BARRIERS AND BREACK DOWNS IN COMMUNICATION
The communication problems or barriers whether arising from mechanical, organizational or personal factors, may often result in distortion of meanings or filtering of information by suppression or with holding.
Broadly, the distortion or filtering of information may be due to the following:-
- Mechanical barriers
- Organizational barriers
- Personal barriers
i) Mechanical barriers Causes
- Distortion- It may be due to noise in the transmission or because the communicator does not use the right words to give meaning and precision to his ideas and
- Filtering – It is caused due to a distance between the communicator and the receiver. As a message passed through different points in the communication channels, it may be attached or twisted by the persons in between whether intentionally or
- Overloading– It is caused by over working of the communication channels due to an increase in the number of messages to be
ii) Organizational barriers
They may be caused by inadequate or improper arrangements for various intra- organizational communication activities.
- Inadequate of facilities that pertains to meetings, conference and other mechanisms for hearing and sorting out suggestions as well as
- Inadequate policies, rules and procedures in an organization. Thus rigidity in communication procedures and rules should be avoided.
- Status pattern – problems in communication arise from relative position of the superior subordinates in the
iii) Personal barriers
Sometimes the failure in communication is due to personal problems of the person to whom the communication is being addressed or the person who is giving out the information.
- Lack of attention or interest
- Hasty conclusion i.e. the receiver may be by nature a person in hurry such that without going through the message carefully, he may jump to hasty conclusion according to his own opinion or
- Lack of confidence in the communication.
- Improper state of mind i.e. emotional mentally
- Love for the status quo i.e. if the communication tends to disturb the existing scheme of things, or is otherwise seen to be against the interest of the receiver, it may create misunderstanding and
ESSENTIALS OF A SOUND COMMUNICATION SYSTEM (PRINCIPLES OF EFFECTIVE COMMUNICATION / WAYS OF OVERCOMING BARRIERS
Effective communication is the responsibility of all people. In the organization managers as well as subordinates who work towards a common aim. Whether communication is effective can be evaluated by the intended results.
A good system of communication must fulfill the following requirements.
- Senders of the message must clarify in their minds what they want to communicate. This means that one of the first steps of communication is clarifying the purpose of the message and making a plan to achieve the intended end.
- Effective communication requires that encoding and decoding be done with symbols that are familiar to the sender and receiver of the
- The information must be send off at the proper time and should reach the receiver when he or she
- All the messages and information should be formed and transmitted to support the integrity of the organization. The communication system should reflect the objective and policies of the
- Participation: – The receiver must be involved in the planning and transmission of the information, such participation helps to promote mutual trust and
- The management should use informal communication to supplement and strengthen formal channels. The grapevine can be used to transmit information not considered appropriate for formal
- A good communication system must contain feedback mechanism where the sender should try to know the reaction of the receiver. This will enable the management to certain whether or not the messages was properly understood and acted upon by the
- Economy: – The communication system should be cost effective. The cost of communication should be controlled by avoiding unwanted messages and communication
- Flexibility: – The system of communication must be flexible enough so that it can be adjusted to the changing requirements of the
- Attention:- The receiver of the communication must be attentive and have an opened
Conflict is the struggle against status and power in which the aims of the parties conflicting are not only to gain the desired values but also to neutralize, injure or eliminate their rivals. Competition is where two parties are purely involved in a win and lose button. Competition may arise where both parties aim at achieving the same goal.
Causes of management conflict
- Breakdown in communication
- Change in organizational culture
- Alienating nature of the job and work environment
- Personality traits-some characters whether senior or junior are highly
They cause trouble anywhere which results in conflict
- Conflict of economic interests- joint interests of the organization. E.g. profits for both workers and management since for the works its reward for the efforts and if paid, it’s a cost to the management
- Status and power within the organization- people will look themselves into whatever status they think they belong. Workers say that they work with their hands while the management works with their heads
How to solve the conflict
Strategies for resolving conflicts can be grouped according to the likely outcomes
i. Win- lose method
One party wins while the other loses. This method includes dominance through power (suppression) ignoring majority of opinion. The winning party uses this power unilaterally.
ii. Lose- lose method
This method is based on compromise
Understanding that half of the loaf is better than nothing therefore, this method results into arbitration incase of collective bargaining
Common features of win- lose and lose- lose methods
- There is a clear “we- they” distinction between the parties e.g. management verses the workers
- Parties direct their energies towards each other in an atmosphere of victory and defeat
- Parties raises a score run view of issues
- Parties only see the issue from their own point of view
iii. Win- win method
In this method both the conflicting parties gain from the conflict. It includes consensus and decision making. Each party treats the problem as something which they have common interests to solve. Each party considers the interests of the owner as important as his own and work towards the solution which helps both sides.
The first two methods i.e. supervision and total war are completely restrictive since hey limit communication between both sides. The results are satisfactory to only one side, leaving the basic conflicts unresolved.
Limited wars and bargaining methods can be described to be neutral where satisfaction to both sides depends to some extent on how the dispute is handled by the parties concerned Problem solving is the most constructive approach and allows both parties to communicate freely with common purpose.
Supervision refers to the expert overseeing of workers performance to ensure that workers are efficiently instructed, guided and assisted to ensure effective and efficient performance of their tasks in the organization.
Functions of Supervision
- The supervision guides and instructs his subordinates on work
- He/she communicates important information to the subordinates
- Maintains effective reporting about work performance in his/her respective section
- Trains the workers on specific skill of work performance
- Maintains discipline within his/her section
- Organizes work within his/her respective sections to ensure
Guidelines to Effective Supervision
- Maintain an appropriate span of control. The supervisor should not supervise too many employees or very few employees
- Ensure that the supervisor posses the relevant skill As per their duties are concerned
- Motivate the supervisors well so as to ensure that they perform their duties with zeal
- Continuously upgrade the skill and knowledge of the supervisor as per as modern technology is concern
- Manager should offer necessary support to the supervisors to ensure that they realize the objectives of their section
- Maintain a good system of reporting and ensure regular follow up on the reports and especially recommendations made by supervisors
- Managers should provide all the relevant information about the organization and the specific section that the supervisor is responsible for
- Utilize the ideas of the supervisors and allow them some degree of creativity and initiative
- Establish the characteristics of the group being supervised in order to determine the degree of supervision. This means that implies that more closer supervision is required for a less motivated workforce and the vise-versa
Importance of Supervision
- Ensures order and discipline in the
- Leads to effective and efficient performance of work at the organization
- Workers learn new skills that are essential for work
- Effective supervision leads to improved morale in the organization
- Effective supervision enhances proper flow of information and therefore enhances effective communication
- It ensures timely delivery of services and products to the
This may be defined as an on going process whereby manager develop an integrated orderly and synchronized pattern of group effort among the subordinates and tries to attain unity of effort in the pursuit of common objectives.
NEEDS FOR COORDINATION
The following are reasons that make coordination necessary.
- Increase in size and complexity of operation- coordination becomes necessary when operations become multiple & complex.
- Clash of interest help to avoid conflict between individual and Organizational goals.
- Specialization- when there is a lot of specialization in the organization coordination becomes
- Interdependent of units
The various units & department that depend on each other need to be coordinated
- Conflicts- In order to minimize potential conflicts coordination is necessary especially between the line & staff offers
STEPS FOR ACHIEVING EFFECTIVE COORDINATION
- Clearly defined goals of the organization and units/
- Simplified organization whereby the lines of authority and responsibility from top to bottom of the organization are clearly
- Effective leadership and supervision.
- Establishment of an effective communication system within the organization
- Establishment of liaison departments or employing a liaison officer
- Introduction of staff groups, task force committees etc to take over some of the coordinative functions of line
By the end of this sub-module unit, the trainee should be able to:
- explain the meaning of controlling function
- describe various systems and processes of control
Control is that function of management that involves monitoring, measurement and correcting performance of employees and other organizational resources according to the plan.
The aim of control is to develop a feedback and to establish any deviations from the plan so as to take corrective action.
IMPORTANCE OF CONTROL
- To ensure that resources are optimally utilized
- To ensure the organization objectives are met
- It limits accumulation of error as they are corrected on time
- Control has a positive physiological impact on the subordinate i.e. when employees know they are being monitored, they become
- Control facilitate the decision making process. The organization can verify the quality of various
- Enables the organization to adopt to environmental changes ie properly designed control system can help managers anticipate, monitor and respond to charging environmental
- It can be used as an evaluation tool
- It enables an organization achieve an optimal level of productivity
- It ensures tasks are completed within the given time
- It improves communication in the organization
- Facilitates decentralization of authority duties can be delegated when there is effective control
ESSENTIAL REQUIREMENT FOR A GOOD CONTROL SYSTEM/FEATURES
A good control system should be affordable and worth the cost.
It should be understandable and simple to administer. It should not be complicated.
It should be suitable to the nature and requirement of the activities being controlled.
It must detect and report deviations as soon as possible, thus should have time reporting of deviations.
It should be able to adjust according to changes in need and circumstances.
- Suggestive of remedial action.
A good control system should disclose where failures are occurring, who is responsible and what should be done about them.
- Organizational pattern
It should conform to the basic structure of organization.(authority responsibility relationships of the organization)
Control should be objective verifiable and specific it shouldn’t be influenced by personalities.
THE CONTROL PROCESS
The control process involves four major steps.
- Establishing the standards
The setting of standards against which actual performance/results are to be evaluated is essential in managerial control. The standards should be clearly and precisely stated, accurate acceptable and attainable as they serve as the criteria against which the results are evaluated. They should also be communicated effectively.
- Measurement of actual performance.
The actual performance is measured against the set standard. That is comparing the performance with the standards. The major question here is what have we achieved.
- Compare the performance
Deviation/gaps from the expected standards are established through comparing the results and the expected performance. Critical deviation should be identified and diagnose their causes and their impacts on the organization.
- Taking corrective
This implies taking a remedial action in order to bring back actual results in the line wit the standards. This may involve review of the plan/standards or putting in place steps to prevent deviations.
TYPES OF CONTROL BUDGETARY CONTROL
A budget is a plan expressed in numerical terms for a specific period of time in future. There are several types of budgets. They include:-
- Sales budget – this shows the volume of sales expected
- Production budgets – shows the quantity and quality of goods to produced
- Material budgets – quantity & quality of raw materials
- Labour budgets – labour requirements
- Capital expenditure budgets – capital investment in assets
- Overhead budget – shows the estimates of overhead costs expected
- Master budget –shows the expected expenditure for the whole
Budgetary control is therefore the process of defining desired performance through the preparation of budgets, measuring and comparing actual results with the corresponding budget data and taking appropriate actions to correct any deviations.
The use of budgets to coordinate, evaluate and control day to day operations in accordance with the specified goals in the budget.
The following are characteristics of budgetary control
- Establish a budget or target performance
- Record the actual performance
- Compare the actual performance with the budgeted
- Calculate the differences and analyze the reasons for them
- Act immediately, if necessary for corrective actions to be taken
- Follow up
ADVANTAGES OF BUDGETARY CONTROL
- Improved planning – expression of plans and policies in quantitative terms gives an overall view of operations and the relative importance of different
- Budgetary controls promote efficiency by eliminating wasteful
- Budget provides useful information for preparing quotations and filling
- Budgeting promotes cooperation and team spirit since all activities of various departments
- Budgets serve as a yardstick with which performance of employees can be evaluated and
- Helps management to delegate authority more freely over specified
- It helps in determination of capital requirements and controlling the cash position of the
- It indicates where executive action is necessary in order to secure desired performance.
DISADVANTAGES OF BUDGETARY CONTROL
- Budgeting is time consuming process and also
- Budgets may be used to hide efficiencies, as past precedents often become evidence for the present
- Rigid adherence to budgets discourages
- Budgets are estimates and can never be one hundred percent
- Budgets are only tools to efficient management and not a substitute for
- BREAK EVEN ANALYSIS
Break-even analysis is frequently used in business and economics to analyze the implication of various pricing and production decisions. This is an important planning and control device as it depicts the relationship between revenue and the total costs (fixed
and variable). The break-even point is the point where the sales revenue is equal to the total costs.
Therefore below the break-even point losses occur and above it profits occur. The fixed and the variable costs are also indicated.
Sales Break-even chart
Although the break-even analysis is an important control tool, it ignores.
- Price changes
- Time gap between production and sales
- Plant size
- PERSONAL OBSERVATION
Personal observation is a very important control tool as it supplements the other control devices such as budgets, audits reports etc. a manager who sits in his office and depend only on the scientific devices hardly realizes a thorough job.
Personal observation allows the manager a better involvement in all the operations of the organization.
However, personal observation suffers the following limitations,
- Manager has to be present thus it consumes a lot of
- There may be bias in the assessment of individual
- It requires to be supplemented by other devices personal observation cannot give all the
- Some critical areas in the organization cannot be effectively evaluated through observation.
- Hawthorne effect may affect the efficiency of personal
Auditing can either be external or internal, external auditing is carried out by an external chattered accountant and is enforced by law in respect to all joint stock companies and cooperatives. It ensures that the stakeholders and any interested parties are safe guarded against any manipulations and malpractices of management. The external out for certifies that the profit and loss account and the balance sheet of the firm gives a true and fair picture of profit or loss and the picture of Financial state of affairs of the company respectively.
For internal audits and a member of staff is appointed specifically for this function in the organization to verify all financial transactions and records and also analyze the overall control system in the organization.
- REPORTS (Special)
Some complex operations in the organization require special analysis and reporting. This system of control can help supplement other control techniques especially where routine accounting and statistical reports falls to give adequate information.
SYMPTOMS OF INADEQUATE/ DEFECTIVE CONTROLS
- Unexplained declines in revenue and profits
- Degradation of services e.g. increase in customer complaints
- Employee dissatisfaction. This will be evidenced by increase in grievances
- Working capital shortage
- Idle facilities and personnel
- Disorganized operations
- Excessive costs
DISTINCION BETWEEN PLANNING AND CONTROL
- It’s deciding and present what is to be done
- Planning is a decision making activity
- Planning uses estimates
- Planning is less structured
- Control rounds off the process of managing organizational resources by measuring results and checking them against previously agreed standards
- Controlling places more reliance on measured data from specific cases
- Control is a monitory process
- Controlling is highly
- Both are concerned with identifying and quantifying standards of
- Measures used for planning purposes are frequently the same with one used for controlling purposes are frequently the same with one used for controlling purposes e.g. targets
- Both makes use of quantitative techniques
- Principles and practice of management by Saksena
- Management dynamics by Sagimo
- Management by Harold Koontz.
- Management principles by A Cole
- Explain the purpose of control in business
- Describe the control
- “Planning is looking ahead while control is looking back” Discus
- Explain the advantages of budgetary controls in the
- Describe five forms of non-budgetary controls.
- Explain the limitations of personal observation as a control
- Explain the major requirements of an effective control system