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Chapter Two

Chapter 2 outlines the objectives of understanding management, emphasizing its definition as a process of achieving goals through group collaboration. It discusses the essential characteristics, nature, and skills required for effective management, including technical, human, conceptual, and diagnostic skills. The chapter also describes the three levels of management—top, middle, and lower—highlighting their distinct roles and responsibilities within an organization.

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7 views27 pages

Chapter Two

Chapter 2 outlines the objectives of understanding management, emphasizing its definition as a process of achieving goals through group collaboration. It discusses the essential characteristics, nature, and skills required for effective management, including technical, human, conceptual, and diagnostic skills. The chapter also describes the three levels of management—top, middle, and lower—highlighting their distinct roles and responsibilities within an organization.

Uploaded by

falmeabdu9
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We take content rights seriously. If you suspect this is your content, claim it here.
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Chapter 2

Objectives of the Learning Task


At the end of this session you will be able
to:

explain the concept of management;

discuss the management skills, roles


required by agribusiness managers and the
levels in agribusiness organizations;
CHAPTER 2
Nature, Scope and Purpose of Management
1. What is management?

Management is the process of designing and maintaining an


environment in which individuals, working together in groups, to
efficiently accomplish selected aims.

“Management is the art of directing and inspiring people.”


Cont.….
From this five aspects (things) are applied to the term
management:

Managers, people carry out the managerial functions.

Management applies to any kind of organization.

Management applies to managers at all organizational


levels.

The aim of all managers is the same – to create surplus.

managing is concerned with productivity – this implies


effectiveness and efficiency.
What is the principal difference between efficiency and effectiveness?

Efficiency; the ability to minimize use of resource in achieving


organizational objectives. “doing things right”

Effectiveness; the ability to determine appropriate objective. “Doing


right thing”

C:\Users\Guest\Downloads\Efficiency vs Effectiveness [360p].mp4

C:\Users\Guest\Downloads\Efficiency & Effectiveness, 3 Levels of


Managers [360p].mp4
2.Essentiality of Management in Any Organization

Why is management? (Discuss in a group)

 Management is important for the following purposes:

 Achievement of group goals:

 Optimum utilization of resources:

 Minimization of cost:

 Survival and growth:

 Generation of employment(How?)

 Development of the nation


3. Characteristics of Management
The various characteristics of management are:

Management is universal:

Management is goal directed:

Management is a continuous process:

Management is an integrating process:

Management is intangible:

Management is multi-disciplinary:

Management is a social process:

Management is situational:
4. Nature of Management
The nature of management can be better appreciated by looking at it :

As process, management consists of a series of inter-related activities


of planning, organizing and controlling.

All activities are undertaken in a proper sequence with a systematic


approach so as to ensure that all actions are directed towards
achievement of common goals.

Thus, it is regarded as a process of organizing and employing


resources to accomplish the predetermined objectives.
As a discipline, Management is a systematized body of
knowledge that has developed, grown and evolved over the years
through practice and research.

The knowledge so acumulated is disseminated to successive


generations of managers and used by them in performing their
jobs.

As a group of individuals, Management normally refers to a


group of managers working in an organization.

It includes the top executive as well as the first line supervisors.

These managers perform their functions jointly as a group.


Management as a Science as well as an Art

Science refers to a systematic body of knowledge with reference to


understanding of some phenomenon or subject or object of study.

Management is regarded as a science because it has developed


certain principles, generalizations and techniques which have more or
less universal application.

Art refers to bringing about the desired result through application of


skill.

It is a personalized process and states that there is no best way of


doing a thing. it is creative and it improves by practice.
Management as Profession
Occupation is profession if it is:

organized and systematized body of knowledge.

Acquired through formal method of acquisition of such knowledge.

Exists an association to devise certain code of conduct for the


professionals.

no doubt an occupation to earn one’s livelihood but the financial


reward is not the main measure of their success.

The professional use their specialized knowledge to serve the long-run


interests of the society and are also conscious of their social
responsibility.
5. Skills of Management
skills of managers are classified into four categories, namely

1. Technical,

2. Human,

3. Conceptual and

4. Diagnostic skills.
Cont.…..

Technical skills: refer to the ability and knowledge in using the


equipment, technique and procedures involved in performing specific
tasks.

deal with jobs

are of greatest importance at the supervisory level.

Human Skills: consist of the ability to work effectively with other


people both as individual and as members of a group.

deal with people

equally important at all levels of management because every


manager has to deal with people.
Cont.……
Conceptual Skills: refer to the ability to visualize the entire picture or
to consider a situation in its totality.
It also include the competence to understand a problem in all its
aspects and to use original thinking in solving the problem.
Necessary for rational decision-making.
Deals with ideas
Important at top management level.
Diagnostic Skills: include the ability to determine by analysis and
examination the nature and circumstances of particular conditions.
A manager can diagnose a problem in the organization by studying its
symptoms.
Cont…

It is not only the ability to specify why something happened but


also the ability to develop certain possible outcomes.

are especially valuable at the top management level.

Deals with investigation


Levels of Management

Usually, managerial personnel may be placed in three levels, that is,


top, middle and lower or supervisory level.

The top level determines the objectives of the business as a whole


and lays down policies to achieve these objectives.

It also exercises an overall control over the organization.

Sometimes senior departmental heads are included in the top


management team.

The middle-level management includes heads of various


departments, e.g., production, sales, etc., and other departmental
managers.
Cont.……..
The objectives of the business as a whole are translated into
departmental objectives for the middle level management.

The lower-level management consists of foremen and supervisors


who look after the operative workers, and ensure that the work is
carried out properly and on time.

Thus, they have the primary responsibility for the actual production
of goods and services in the organisation.
Top level management
B.O.D, CEO…

Middle level mgt


Departmental head ,production
sale marketing

Bottom level management


Supervisor , jobber ,foremen
Top level management
Other name –higher level of management

Members –Boar of director ,managing directors ,general


manager ,CEO.

Supreme authority

Important policy decision made by top level


management.
Function of top level management

o To take strategic decision.

o To analyze and resolve complex problems

o To plan for the enterprise, implementation and


supervision

o Distribution of profit ,dividend ,reserve funds and


reinvestment of funds

o To analyze report of different activities


• Middle level management
o Important link between top level management and lower
level management

o Other name officers level

o Members departmental officers ,divisional experts


officers
• Function of middle level management
To implement orders and instruction given by CEO.

To prepare budget by each department.

To formulate rule police and structure.

To focus on function of subdivision.

To supervise function of employee.

To implement policies and decision decided by top level


management
Bottom level management

Other name –supervisors level, functional level


or operational level

Members- supervisors and jobber


Function of bottom level management
o To supervise function of employees

o Discipline among employee and boosting their moral to


plan routine work for departments

o to perform function like promotion, training, transfer

o To solve problem of workers


Goals of All Managers
 What should all managers do?

 Goal; the purpose that an organization strive to achieve.

 Organization often have more than one goal.

Goals of all managers

To create surplus.(strategic management).

To be productive. productivity implies effectiveness and efficiency


in individual and organizational performance.

 Managers cannot know whether they are productive unless they first

know their goals and those of the organization.


Strategic Management is the art and science of formulating,
implementing, and evaluating cross-functional decisions that enable
an organization to achieve its objectives.
Scope of Management

 The field of management is very wide. The operational areas of


business management may be classified into the following categories;

 Production Management:

 Marketing Management:

 Financial Management:

 Personnel Management:
Function of management

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