Contents

Task 1: Areas of management.........................................................................2

1.1

Human resource management..................................................................2

1.2

Production management...........................................................................2

1.3

Office management................................................................................... 2

1.4

Financial management.............................................................................. 3

1.4.1

Investment policies.............................................................................3

1.4.2

Methods of financing:.........................................................................3

1.4.3

Dividend decisions:............................................................................. 3

1.5
2

Marketing management............................................................................3

Task 2: Primary functions of management......................................................4

2.1

What is management?..............................................................................4

2.2

Functions of management.........................................................................4

2.2.1

Planning.............................................................................................. 4

2.2.2

Organizing.......................................................................................... 5

2.2.3

Staffing............................................................................................... 5

2.2.4

Directing............................................................................................. 5

2.2.5

Controlling.......................................................................................... 6

Task 3: Mintzbergs managerial roles...............................................................6

3.1

Interpersonal Roles................................................................................... 6

3.2

Informational Roles................................................................................... 7

3.3

Decisional Roles........................................................................................ 8

4 Task 4: Difference between Non-Profit, Mutual-benefit and Profit Oriented

Managers............................................................................................................... 9
4.1

For-profit corporation Managers................................................................9

4.2

Non-profit organization Managers.............................................................9

4.3

Mutual-benefit corporation Managers.......................................................9

Task 5: Fayol Principle of Management............................................................9

Task 6: Challenges faced by managers today and respective solutions........12

Task 1: Areas of management

There are basically 5 key functional areas of management. They are;

1.1

Human resource management

Production management
Office management
Finance management
Marketing management

Human resource management

Human resource or manpower management is an area of management that deals with

sourcing and maintaining a satisfactory and satisfied work force. Human resource
management is a specialized division of management that basically manage the activities of
the work force in an organization to achieve optimal result. The responsibility of the HR
department is to recruit, make placement, induction, give orientation, provide suitable
training, give promotion, motivate etc. the all employees.
1.2

Production management

Production management has to do with planning, coordination, organization, direction and

control of the production function. This is to ensure that desired goods and services can be
produced at the right time, in the right quantity and at a reasonable cost. Listed below are the
processes involved in production management.

1.3

Product planning and development,

Plant location, layout and maintenance,
Production systems and machines,
Management of purchase and storage of materials,
Ensuring effective production control.
Office management

Office management is the art of organizing an office in order to attain a specified purpose and
to make the best use of the personnel. This can be achieved by using the most appropriate
machines and equipment, the best possible methods of work and by providing the most
suitable environment.
The most important factors of office management are

Office accommodation
Office layout and environment

Communication

Other factors are handling correspondence and mail, typing and duplicating, record
management and filing, indexing, forms and stationary, machines and equipment, O & M,
office reporting, work measurement and office supervision.
1.4 Financial management
Financial management can be described as the study of the affiliation between the raising and
deployment of funds. The subject matter of financial management is: capital budgeting cost
of capital, portfolio management, dividend policy, short and long term sources of finance.
Financial management involves mainly three decisions namely;
1.4.1 Investment policies
It dictates the process associated with capital budgeting and expenditures. All proposals to
spend money are ranked and investment decisions are taken whether to sanction money for
these proposed ventures or not.
1.4.2 Methods of financing:
A proper mix of short and long term financing is ensured in order to provide necessary funds
for proposed ventures at a minimum risk to the enterprise.
1.4.3 Dividend decisions:
This decision affects the amount paid to shareholders and distribution of additional shares of
stock.
1.5

Marketing management

According to American Marketing Association, marketing management is the process of

planning and executing the conception, pricing, promotion and distribution of ideas, goods
and services to create exchange that satisfy individual and organizational objectives.
The course content of marketing management generally includes: marketing concept,
consumer behaviour, marketing mix, market segmentation, product and price decisions,
promotion and physical distribution, marketing research and information, international
marketing etc.

Task 2: Primary functions of management

Generally, management has many functions but here, the main functions of management are
going to be discussed. However, before the main functions of management is being
discussed, it is of importance to explain the meaning of management to enable better
understanding of the main functions of management.
2.1

What is management?

Management is a general activity and is being widely used in different works of life. All
businesses, political, cultural and social activities involve management. This is because the
managerial activities of the organization help to direct the various effort of the organization
towards a definite purpose.
Management is a purposive activity. It is something that directs group efforts towards the
attainment of certain pre - determined goals. It is the process of working with and through
others to effectively achieve the goals of the organization, by efficiently using limited
resources in the changing world. Of course, these goals may vary from one enterprise to
another. E.g.: For one enterprise, it may be launching of new products by conducting market
surveys and for other it may be profit maximization by minimizing cost.
2.2

Functions of management

There are 5 main functions of management. They are;

2.2.1

Planning
Organizing
Staffing
Directing
Controlling

Planning

Planning is a basic function of management. It involves the putting down a future course of
action predetermining most appropriate course of actions for achieving the specified goals.
According to KOONTZ, Planning is deciding in advance on what to do, when to do and how
to do it. It is the bridge between where we are and where we want to be.
2.2.2

Organizing

This is the art of bringing together physical, financial and human resources and developing
productive relationship among them in other to achieve organizational goals. According to
Henry Fayol, To organize a business is to provide it with everything useful or its functioning

i.e. raw material, tools, capital and personnels. To organize a business involves defining and
providing human and non-human resources to the organizational structure. The processes
involved in Organizing are

2.2.3

Identification of activities.
Classification of grouping of activities.
Assignment of duties.
Delegation of authority and creation of responsibility.
Coordinating authority and responsibility relationships.

Staffing

This is the art of operating the organizational structure and keeping it working. Staffing is
assumed to be of greater importance in the current years due to development of technology,
increase in size of business, complexity of human behaviour etc. The main goal of staffing is
to put the right man on the right. Staffing involves:

2.2.4

Manpower Planning
Recruitment, Selection & Placement.
Training & Development.
Remuneration.
Performance Appraisal.
Promotions & Transfer

Directing

It is that part of managerial function which actuates the organizational methods to work
efficiently for achievement of organizational purposes. It is considered life-spark of the
enterprise which sets it in motion the action of people because planning, organizing and
staffing are the mere preparations for doing the work. Direction is that inert-personnel aspect
of management which deals directly with influencing, guiding, supervising, motivating subordinate for the achievement of organizational goals. Direction has following elements:

Supervision
Motivation
Leadership
Communication

2.2.5

Controlling

It implies analysis of achievement with reference to the standards of the organization. It also
has to do with the correction of deviation if any to ensure achievement of organizational
goals. The main reason of controlling is to make sure that everything that happens in the
company is within the standards and conformities of the companies. An efficient system of
control helps to predict deviations before they actually occur. Therefore, controlling has the
following steps:

Establishment of standard performance.

Measurement of actual performance.
Comparison of actual performance with the standards and finding out deviation if any.
Corrective action.

Task 3: Mintzbergs managerial roles.

3.1

Interpersonal Roles

Interpersonal roles are roles that involve people (subordinates and persons outside the
organization) and other duties that are ceremonial and symbolic in nature. The three
interpersonal roles include being a

Figurehead
Leader
Liaison.

According to Dr. Henry Mintzberg These three interpersonal roles is being derive from the
authority and status associated with managers post.
Figurehead: The figurehead carries out symbolic legal or social duties. All social,
inspiration, legal and ceremonial obligations is being carried by the figurehead. In this
context, the manager is being regarded as a symbol of authority.
Leader: As a Leader, building relationships with employees, communicating, motivating
and coaching them is of great priority.
Liaison: The liaison keeps a form of network and contacts with people outside the work unit
to obtain information.

3.2

Informational Roles

The Informational roles of Mintzbergs managerial roles involves being a;

Monitor
Disseminator
Spokesperson.

These informational roles are all about processing information so that managers can serve as
the nerve centres of their organization.
Monitor: The monitor finds internal and external information about matters that can affect
the organization. His Duties include assessing internal operations, a departments success and
the problems and opportunities which may arise. All the information gained in this capacity
must be stored and maintained
Disseminator: The disseminator conveys internally obtained information from either internal
or external sources. Highlights factual or value based external views into the organization and
to subordinates. This requires both filtering and delegation skills.
Spokesperson: The spokesperson transmits information about the organization to outsiders.
Serves in a PR capacity by informing and lobbying others to keep key stakeholders updated
about the operations of the organization.

3.3 Decisional Roles

Then Decisional roles involves being an;

Entrepreneur
Disturbance handler
Resource allocator
Negotiator

Entrepreneur: The entrepreneur acts as an initiator, designer, and encourage of change and
innovation. Roles encourage managers to create improvement projects and work to delegate,
empower and supervise teams in the development process.

Disturbance handler: The disturbance handler takes corrective action when the organization
faces important, unexpected difficulties. A generalist role that takes charge when an
organization is unexpectedly upset or transformed and requires calming and support.
Resource allocator: The resource allocator distributes resources of all types, including time,
funding, equipment, and human resources. Describes the responsibility of allocating and
overseeing financial, material and personnel resources.
Negotiator: The negotiator represents the organization in major negotiations affecting the
managers areas of responsibility is a specific task which is integral for the spokesman,
figurehead and resource allocator roles.
These 10 roles of a manager stated by Mintzburg carries great responsibilities. Informing,
Connecting, and ordering require a manager to able to adapt to the situation and controlling it
in a balanced way.

Task 4: Difference between Non-Profit, Mutual-benefit and Profit Oriented

Managers

4.1 For-profit corporation Managers

For-profit corporation managers are administered to earn profit to increase the wealth of their
owners. Managers in for-profit organizations focus on the system and production.
4.2 Non-profit organization Managers
A non-profit organization manager is obliged to be dedicate its operations to achieve a
charitable or educational goal. The manager must ensure that the organization's operations are
solely dedicated to achieving that goal. A manager of such an organization is not focused on
generating profit.

4.3 Mutual-benefit corporation Managers

Mutual-benefit corporation managers are usually formed for non-profit purposes, such as
managing a condo association. The managers of such an organization are concerned about
improvements in human and environmental well-being rather than maximizing profits
for external shareholders.

Task 5: Fayol Principle of Management

Division of Work
Employees are specialized in different areas and they have different skills. Different levels of
expertise can be distinguished within the knowledge areas (from generalist to specialist).
Personal and professional developments support this. According to Henri Fayol specialization
promotes efficiency of the workforce and increases productivity. In addition, the
specialization of the workforce increases their accuracy and speed. This management
principle of the 14 principles of management is applicable to both technical and managerial
activities.
Authority and Responsibility
In order to get things done in an organization, management has the right to give orders to the
employees. Of course, with this authority comes responsibility. According to Henri Fayol, the
accompanying power or authority gives the management the right to give orders to the
subordinates. The responsibility can be traced back from performance and it is therefore
necessary to make agreements about this. In other words, authority and responsibility go
together and they are two sides of the same coin.
Discipline
This third principle of the 14 principles of management is about obedience. It is often a part
of the core values of a mission and vision in the form of good conduct and respectful
interactions. This management principle is essential and is seen as the oil to make the engine
of an organization run smoothly.
Unity of Command
The management principle Unity of command means that an individual employee should
receive orders from one manager and that the employee is answerable to that manager. If

tasks and related responsibilities are given to the employee by more than one manager, this
may lead to confusion which may lead to possible conflicts for employees. By using this
principle, the responsibility for mistakes can be established more easily.
Unity of Direction
This management principle of the 14 principles of management is all about focus and unity.
All employees deliver the same activities that can be linked to the same objectives. All
activities must be carried out by one group that forms a team. These activities must be
described in a plan of action. The manager is ultimately responsible for this plan and he
monitors the progress of the defined and planned activities. Focus areas are the efforts made
by the employees and coordination.
Subordination of Individual Interest
There are always all kinds of interests in an organization. In order to have an organization
function well, Henri Fayol indicated that personal interests are subordinate to the interests of
the organization (ethics). The primary focus is on the organizational objectives and not on
those of the individual. This applies to all levels of the entire organization, including the
managers.
Remuneration
Motivation and productivity are close to one another as far as the smooth running of an
organization is concerned. This management principle of the 14 principles of management
argues that the remuneration should be sufficient to keep employees motivated and
productive. There are two types of remuneration namely non-monetary (a compliment, more
responsibilities,

credits)

and

monetary

(compensation,

bonus

or

other

financial

compensation). Ultimately, it is about rewarding the efforts that have been made.
The Degree of Centralization
Management and authority for decision-making process must be properly balanced in an
organization. This depends on the volume and size of an organization including its hierarchy.
Centralization implies the concentration of decision making authority at the top management
(executive board). Sharing of authorities for the decision-making process with lower levels
(middle and lower management), is referred to as decentralization by Fayol. Henri
Fayol indicated that an organization should strive for a good balance in this.

Scalar Chain
Hierarchy presents itself in any given organization. This varies from senior management
(executive board) to the lowest levels in the organization. Henri Fayol s hierarchy
management principle states that there should be a clear line in the area of authority (from top
to bottom and all managers at all levels). This can be seen as a type of management structure.
Each employee can contact a manager or a superior in an emergency situation without
challenging the hierarchy. Especially, when it concerns reports about calamities to the
immediate managers/superiors.
Order
According to this principle of the 14 principles of management, employees in an organization
must have the right resources at their disposal so that they can function properly in an
organization. In addition to social order (responsibility of the managers) the work
environment must be safe, clean and tidy.
Equity
The management principle of equity often occurs in the core values of an organization.
According to Henri Fayol, employees must be treated kindly and equally. Employees must be
in the right place in the organization to do things right. Managers should supervise and
monitor this process and they should treat employees fairly and impartially.
Stability of Tenure of Personnel5
This management principle of the 14 principles of management represents deployment and
managing of personnel and this should be in balance with the service that is provided from
the organization. Management strives to minimize employee turnover and to have the right
staff in the right place. Focus areas such as frequent change of position and sufficient
development must be managed well.
Initiative
Henri Fayol argued that with this management principle employees should be allowed to
express new ideas. This encourages interest and involvement and creates added value for the
company. Employee initiatives are a source of strength for the organization according
to Henri Fayol. This encourages the employees to be involved and interested.
Esprit de Corps

The management principle esprit de corps of the 14 principles of management stands for
striving for the involvement and unity of the employees. Managers are responsible for the
development of morale in the workplace; individually and in the area of communication.
Esprit de corps contributes to the development of the culture and creates an atmosphere of
mutual trust and understanding.
The Fayol Principle of Management is still applicable for managers today.

Task 6: Challenges faced by managers today and respective solutions

Supporting employees
When having to address issues such as staff behaviour, poor performing staff members or
staff reviews, managers should be able to lean on someone for support and advice. The first
step is often just to stop, listen and understand the situation, something managers can
sometimes forget when they find themselves in difficult situations. Managers think they need
to have all the answers and at times are unsure of how to listen and communicate about
behaviour. Organisations may offer an independent service to give guidance and support to
help empower managers which is a particularly useful tool for providing additional support to
managers in demanding situations.
Managing organisational changes
Restructuring and redundancy is a difficult and stressful time for all concerned with
employees often faced with new and challenging tasks. Redundancy is one of the toughest
changes an organisation has to manage. Not only are the effects felt by the employees being
made redundant, but also by employees that are staying. Managers making the difficult
decisions and delivering the news to employees can benefit from talking through different
approaches. Managers can seek the support of a consultancy team to assist through this time
and discuss how to communicate and motivate the employees who are staying. It is vital that
managers explain why a role is being made redundant, what the consequences for the staff
member are and the immediate next steps.
Maximising wellbeing
Todays managers are expected to nurture and train staff and bring out the best in all
employees and they often need to acquire these extra skills to be able to do so. With one in

five people likely to experience a mental health issue in their lifetime, managers increasingly
have to manage employees who are experiencing mental health concerns. There are a number
of tailored workplace programs available that can educate a manager on how to support and
maximise individual and workplace wellbeing. Remember, you need to invest in the
wellbeing of your staff to maximise productivity.
Improve communication skills
In todays competitive landscape, workplace conflict is unfortunately inevitable as the
pressure of getting the job done can create tension between co-workers and management.
Conflict must be properly managed to reduce the risk of escalation and strong communication
skills are the most effective tool to do so. Understanding causes and types of conflict can help
choose the best approach. Communicating effectively is essential to negotiating and
managing conflict. A quick intervention can help reduce staff turnover, productivity loss and
absenteeism.
Leading through a crisis
Effective crisis management can be vital in todays business environment; a companys
reputation can depend on it. As crises, such as workplace accidents and natural disasters are
something that rarely happen, if ever, managers may be unaware how best to manage the
emotional impact of these situation if they occur. Critical incidents are usually overwhelming
for everyone and knowing the right things to say and do will allow employees to recover and
cope more quickly. This is helpful in restoring calm and reducing the longer-term impact on
workers and helping return the workplace to its pre-crisis state as soon as possible. Effective
intervention is always best and will ensure a quick return to normal productivity.
When we consider what is now expected of managers and look at the wide variety of
challenges they face, its no surprise that management support and training is becoming an
essential investment in any workplace.
So how do we become better managers and leaders? Good communication and motivation
skills, the ability to bring out the best in people and promoting staff engagement are just some
of the skills necessary to progress as a manager today. Not only are managers expected to be
great leaders, there are also a number of other challenges they face.

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