PRINCIPLES OF MANAGEMENT AND ORGANIZATION

TOPICS PAGE NO.

Lesson 1
3 - 17
NATURE AND CONCEPT OF MANAGEMENT

Lesson 2
18 - 25
THE FIRM AND ITS ENVIRONMENT

Lesson 3
26 - 29
PRINCIPLES OF MANAGEMENT FUNCTION

Lesson 4
30 - 38
CONCEPT OF PLANNING FUNCTION

Lesson 5
39 - 44
CONCEPT OF ORGANIZING FUNCTION

Lesson 6
45 - 60
CONCEPT OF STAFFING FUNCTION

Lesson 7
61 - 66
CONCEPT OF DIRECTING/LEADING FUNCTION

Lesson 8
67 - 72
CONTROLLING FUNCTION OF MANAGEMENT
 COURSE OUTCOMES

At the end of the semester, the student will be able to:

• Explain the fundamental concepts, principles and processes of business management

and organizations

• Understand and apply these functional areas of management in business and

organization situations

• To use analytical thinking and problem-solving skills to address specific problems in the
areas of management and organization

• Evaluate the global context for taking managerial actions of planning, organizing, staffing,
directing and controlling

• Assess global situation, including opportunities and threats that will impact management
of an organization

• Integrate management principles into Management practices

 LESSON 1
NATURE AND CONCEPT OF MANAGEMENT

Overview:
Management is a distinct process consisting of activities, planning, organizing, actuating,
and controlling, performed to determine and accomplish stated objectives with the use of human
beings and other resources. (Terry and Franklin)

Management is a process of designing and maintaining an environment in which individuals,

working together in groups, efficiently accomplish selected aims. (Koontz and Weihrich)

Management is an art of knowing what is to be done and seeing that it is done in the best
possible manner. (F.W Taylor)

Management is to forecast, to plan, to organize, to command, to coordinate, and control

activities of others. (Henri Fayol)

Learning Objectives:
After successful completion of this lesson, you should be able to:

• Discuss the meaning and concepts of management

• Explain the various types of management theories
• Explain the functions, roles, and skills of a manager

Course Materials:
What is the role of management? The role of the Management is to move an organization
towards its purposes or goals by assigning activities that the organization members perform. It
provides new ideas, imaginations and visions to the group working to account for better results
or performances. Since most of the human aims can be well realized only through collective
action, management is universally called for in all such organizations of the society.

DEFINITIONS AND FUNCTION OF MANAGEMENT

Management is a distinct process consisting of activities, planning, organizing, actuating,
and controlling, performed to determine and accomplish stated objectives with the use of human
beings and other resources. (Terry and Franklin)

Management is a process of designing and maintaining an environment in which

individuals, working together in groups, efficiently accomplish selected aims. (Koontz and
Weihrich)
Management is an art of knowing what is to be done and seeing that it is done in the best
possible manner. (F.W Taylor)
Management is to forecast, to plan, to organize, to command, to coordinate, and control
activities of others. (Henri Fayol)

MANAGEMENT DEFINITION
- is the co-ordination of all resources through the process of planning, organizing,
directing, and controlling in order to attain stated objectives
 - is the art of knowing what you want to do and then seeing that it is done in the best
and cheapest way
- is concerned with seeing that the job gets done; its tasks all center on planning and
guiding the operations that are going on in the enterprise
- is a multipurpose organ that manages a business and manages managers and
manages workers and work
- consists in guiding human and physical resources into dynamic, hard-hitting
organization unit that attains its objectives to the satisfaction of those served and with
a high degree of morale and sense of attainment on the part of those rendering the
service
- is an aspect of the business that doesn‘t have the same specific duties some of the
other parts of the business have
- is a process with a social element. It requires the efficient use of resources combined
with the guidance of people in order to reach a specific organizational objective. It
involves responsibility to achieve the objectives and to fulfil specific organizational
purposes through economical and effective planning and regulation. It‘s about taking
charge and ensuring focus is placed on the things and aspects of the business that
help achieve the vision and the goals.

OBJECTIVES OF MANAGEMENT
a. Organizational Objectives – Reasonable profits, survival and growth of business,
improving the goodwill of the enterprise, etc.
b. Personal Objectives – Fair remuneration for work performed, reasonable working
conditions, opportunities for training and development, reasonable security of service,
etc.
c. Social Objectives – Quality of goods and services at fair price to customers, honest
and prompt payment of taxes, conservation of environment and natural resources,
preservation of ethical values of the society, etc.

Three key characteristics that define the process of management

1. Management is a process of continuing and related activities. Each of the functions
is related to each other and the functions complement each other. It is hard to
consider the functions in isolation, as management requires each activity to
complement one another. When you as a manager engage in one function, you in
effect also start the process of another function.
2. Management is about it involving and concentrating on organizational goals.
Management is largely focused on achieving the key mission of the organization,
its vision. Whilst there are detailed objectives it might focus on; management is
mainly interested in identifying the wider organizational goals and using the different
functions in order to achieve the objectives. Each function takes the organization
closer to achieving its vision.
3. Management achieves the organizational goals by working with people and
organization resources. You might use different financial resources or physical
equipment as part of the process, while also directing and guiding the staff towards
the objectives. The manager is in charge of supporting the people and connecting
the right person with the right resources.
ROLES OF MANAGEMENT

The role of the Management is to move an organization towards its purposes or goals by
assigning activities that organization members perform. It provides new ideas, imaginations and
visions to the group working to account for better results or performances. Since most of the
human aims can be well realized only through collective action, management is universally
called for in all such organizations of the society.

IMPORTANCE OF MANAGEMENT

1. It helps in Achieving Group Goals- Management converts disorganized resources of

men, machines, money etc. into useful enterprise.
2. Optimum Utilization of Resources- Management utilizes all the physical & human
resources productively.
3. Reduces Costs- It gets maximum results through minimum input by proper planning
and by using minimum input & getting maximum output.
4. Establishes Sound Organization - Management fills up various positions with right
persons, having right skills, training, and qualification. All jobs should be cleared to
everyone.
5. Establishes Equilibrium- It enables the organization to survive in changing
environment.
6. Essentials for Prosperity of Society- Efficient management leads to better economical
production which helps in turn to increase the welfare of people.

FUNCTIONS OF MANAGEMENT
Planning – According to KOONTZ, ―Planning is deciding in advance - what to do, when
to do & how to do. It bridges the gap from where we are & where we want to be.
Organizing – 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 personnel.
Staffing – According to Kootz & O‘Donell, ―Managerial function of staffing involves
manning the organization structure through proper and effective selection, appraisal &
development of personnel to fill the roles designed in the structure‖.
Directing – Direction is that inert-personnel aspect of management which deals directly
with influencing, guiding, supervising, motivating sub-ordinate for the achievement of
organizational goals. Direction has following elements:
- Supervision
- Motivation
- Leadership
- Communication
Controlling – According to Theo Haimann, ―Controlling is the process of checking
whether or not proper progress is being made towards the objectives and goals and
acting, if necessary, to correct any deviation.
EVOLUTION OF MANAGEMENT THEORIES

The simplest definition of management is getting things done through people. It implies
that an organization, whether small, medium, or large, is composed of people. A business
organization exists for a purpose.
Management is a function that directs and coordinates the efforts of the people to
accomplish goals and objectives by using available resources efficiently and effectively. It is also
a process of accomplishing the organization‘s goals by working with and through people. Its task
includes planning, organizing, staffing, leading or directing, and controlling.

1910s-1940s: Management as Science

Management as Science was developed in the early 20th century and focused on
increasing productivity and efficiency through standardization, division of labor,
centralization, and hierarchy. A very top-down‘ management with strict control over people
and processes dominated across industries.

1950s-1960s: Functional Organizations

Due to growing and more complex organizations, the 1950s and 1960s saw the
emergence of functional organizations and the Human Resource (HR) movement.
Managers began to understand the human factor in production and productivity and tools
such as goal-setting, performance reviews, and job descriptions were born.

1970s: Strategic Planning

The focus is from measuring function to resource allocation and tools like Strategic
Planning, Growth Share Matrix, and SWOT (identification and analysis of the company‘s
Strengths, Weaknesses, Opportunities, and Threats) were used to formalize strategic
planning process. After several decades of ‗best practice‘ and ‗one size fits all‘ solutions,
academics began to develop contingency theories.

1980s: Competitive Advantage

As the business environment grew increasingly competitive and connected, and with a
blooming management consultancy industry. Competitive Advantage became a priority for
organizations in the 1980s. Tools like Total Quality Management (TQM), Six Sigma, and
Lean Management were used to measure processes and improve productivity. Employees
were more involved by collecting data, but decisions were still made at the top, and goals
were used to manage people and maintain control.

1990s: Process Optimization

Benchmarking and business process reengineering became popular in the 1990s, and by
the middle of the decade, 60% of Fortune 500 companies claimed to have plans for or
have already initiated such projects. TQM, Six Sigma, and Lean remained popular and
more holistic, organization-wide approach and strategy implementation took the stage with
tools such as Strategy Maps and Balance Scorecards.

2000s: Big Data

Largely driven by the consulting industry under the banner of Big Data, organizations in
the 2000s started to focus on using technology for growth and value creation. Big data is
a broad term for data sets so large or complex that traditional data processing applications
are inadequate. Accuracy in big data may lead to more confident decision-making. And
 better decisions can mean greater operational efficiency, cost-reductions, and reduced
risk. After several decades of trying to manage people through the different management
theories, one has to realize that what worked before just simply is not enough anymore.
Traditional Management is fine if one wants compliance, but if one wants innovation and
growth, management has to engage its people on a whole new level. Top-down control is
a thing of the past. Succeeding in today‘s environment requires a management style that
inspires and is participatory.

The Famous Theories on the Functions of Management

Since management involves solving the problems within an organization in order to reach
the desired objectives, the focus is on understanding the functions that make up the process. As
experts began studying and theorizing the essence of management, different ideas and concepts
regarding the functions were born.

Although the theories about the functions of management lead to rather similar results, it
can be helpful to study the differences as well as the historical journey to our current understanding
of the functions. Here are a few of the most influential theories and theorists, who‘ve outlined their
ideas about the functions of management.

a. Henri Fayol
Henri Fayol was the first to attempt classifying managerial activities into specific functions.
The French engineer established the first principles of the classical management theory at
the start of the last century. Fayol is considered the founding father of concepts such the line
and staff organization. When Fayol developed his strategies and ideas, managers in
organizations didn‘t have any kind of formal training and therefore Fayol‘s ideas were ground-
breaking. As well as setting out 14 general principles of management, Fayol also defined the
five core functions of management, which are still used and which form the basis of much of
the later theories. To Fayol, manages is a process, which includes forecasting, planning,
organizing, commanding and controlling. These are the foundation of setting the relationship
between the subordinates and the superior and the five core functions help the management
to solve problems in the relationship or within the organization in a creative manner.

Henri Fayol is claimed to be the real father of modern management. He was a Frenchman
born in 1841 and was working as an engineer with a mining company. He improved the
condition of the company from virtual bankruptcy to high success. From his practical
experience, he developed some techniques. He brought out some 14 basic management
principles, which he felt, could be used in all management situations, irrespective of the
organizational framework.

He wrote a book entitled, General and lndustrial Management, in French that was later on
translated into English. It is now considered as one of the classics of management literature.
The book mainly covers the aspects of the immutable and repetitive character of the
management process and the concept that management can be taught in the classroom or
the workplace. He also laid down the principles of management, which he deemed important
for any organization.
Henri Fayol’s 14 Principles of Management
1. Division of Work: This is the principle of specialization, which is very well expressed
by economists as being a necessary factor for efficiency in the utilization of labor.
2. Authority and Responsibility: In this principle, Fayol conceives authority as a
combination of official authority deriving from a manager‘s official position and
personal authority, which is compounded of intelligence, experience, moral worth,
past services etc.
3. Discipline: Holding the notion that discipline is ‗respect for agreements which are
directed as achieving obedience, application, energy and the outward marks of
respect‘, Fayol declares that discipline requires good superiors at all levels, clear and
fair agreements and judicious application of penalties.
4. Unit of Command: This is the principle, which states that on employee should receive
orders from one superior only.
5. Unity of Direction: According to Fayol, the unity of direction principle implies that
each group of activities having the same objectives must have one head and one
plan. As distinguished from the principle of unity of command, Fayol perceives unity
of direction as related to the functioning of personnel.
6. Subordination of Individual Interest to General Interest: In any group, the interest
of the group should supersede that of the individual. When the interests differ, it is the
function of the management to reconcile them.
7. Remuneration of Personnel: Fayol perceives that remuneration and methods of
payment should be fair and also should be able to afford the maximum satisfaction to
employee and employer.
8. Centralization: Although Fayol does not use the term, Centralization of Authority, his
principle definitely refers to the extent to which authority is concentrated or dispersed
in on enterprise. Individual circumstances determine the degree of centralization that
gives the best overall yields.
9. Scalar Chain: Fayol thinks of the scalar chain as a line of authority, a chain of
superiors from the highest to the lowest ranks. And, because it is an error of a
subordinate to depart needlessly from the lines of authority, the chain should be short-
circuited.
10. Order: Breaking this principle into material order and social order, Fayol thinks of it
as a simple edge for everything. This organization is the principle, which refers to
arrangement of things and persons in an organization.
11. Equity: Fayol perceives this principle as one of eliciting loyalty and devotion from
personnel with a combination of kindliness and justice in managers while dealing with
subordinates.
12. Stability of Tenure of Personnel: Finding that instability is both the cause and effect
of bad management, Fayol points out the dangers and costs of unnecessary turnover.
13. Initiative: Initiative is conceived as the process of thinking out and executing a plan.
Since it is one of the keenest satisfactions for an intelligent man to experience, Fayol
exhorts managers to sacrifice personal vanity in order to permit subordinates to
exercise it.
14. Esprit de corps: This principle implies that union is strength and an extension of the
principle of unity of command. Fayol here emphasizes on the need for teamwork and
the importance of communication in obtaining it.
b. George R. Terry
After Fayol, many theorists have looked at the functions and crafter their own ideas,
deviating only slightly from Fayol‘s core functions. George R. Terry wrote a book Principles of
Management in 1968 and outlined his view on the principles. Terry believed there to be four core
functions, each function posing and responding to a specific question the management must
solve. The question, the fundamental function and the resulting action are outlined in the below
graph:

c. Harold Koontz and Cyril O’Donnell

In 1976, Harold Koontz and Cyril O‘Donnell published an essay Management: A Systems
and Contingency Analysis of Managerial Functions. They felt the previous studies have been
effective in describing the functions, but believed the division should be more detailed. Koontz
and O‘Donnell believed there to be five key functions of management: Planning, Organizing,
Staffing, Directing/Leading, and Controlling. These five functions of management have become
perhaps the most cited and they are explained further in the following section. Overall, the quick
outlook would hopefully have highlighted the alignment of the functions of management in
different management theories.

WHERE DID MANAGEMENT THEORIES ORIGINATE?

Mass production and the Industrial Revolution brought about new requirements for managing
people and processes. As companies began to grow and production, business owners
increasingly needed managers to run their daily operations. Prior to the Industrial Revolution,
only a few organizations and militaries required theories for management. As a result of
expanding industry, the practice of management became a major theoretical consideration in the
study of business.

HOW ARE MANAGEMENT THEORIES CLASSIFIED?

Certain management theories have become integral to modern business practices. There are
three major classifications for management theories: Classical Management Theory,
Behavioral Management Theory and Modern Management Theory. These classifications
represent a different era in the evolution for management theories. Each of these classifications
further contain multiple sub-theories. Classical Management Theory centers around execution
and maximizing production. Behavioral Management Theory focuses increasingly on human
elements and viewing the workplace as a social environment. Modern Management Theory
builds on the previous two theories, while incorporating modern scientific methods and systems
thinking.

Classical Management Theory is the oldest management theory. Classical Management

Theory focuses on operations and the creation of standards to increase production output. In
Classical Management Theory, compensation is considered the primary motivation for
employees. A manager practicing Classical Management Theory would be focused on improving
output and rewarding high-performing employees through wages or bonuses.

There are three primary theories that comprise the Classical Management Theory:

a. Scientific Management Theory is a very early management theory focused on minimizing

waste and reducing production times. It was developed by Frederick Taylor, who attempted
using a scientific approach for improving operations. Taylor‘s theory emphasizes incentivizing
employee performance and reducing ―hit and trial‖ practices.

American mechanical engineer Frederick Taylor, who was one of the earliest management
theorists, pioneered the scientific management theory. He and his associates were among
the first individuals to study work performance scientifically. Taylor‘s philosophy emphasized
the fact that forcing people to work hard was not the best way to optimize results. Instead,
Taylor recommended simplifying tasks to increase productivity. According to Taylor, money
was the key incentive for working, which is why he developed the ―fair day‘s wages for a
fair day‘s work‖ concept. Since then, the scientific management theory has been practiced
worldwide. The resulting collaboration between employees and employers evolved into the
teamwork that people now enjoy.

b. Administrative Management Theory- Administrative Management Theory was developed

by Henri Fayol, who is a founder of management theory. This theory considers all the many
activities that a business must conduct. Management is considered a primary business
activity and this theory provides detailed guidelines for managers.
It attempts to find a rational way to design an organization. The theory generally calls for a
formalized administrative structure, a clear division of labor, and delegation of power and
authority to administrators relevant to their areas of responsibilities.

c. Bureaucracy Theory- Bureaucracy Theory promotes reason to guide management

decisions, rather than charisma or nepotism. Developed by sociologist Max Weber, this
theory emphasizes formal authority systems. Unity and the authority of organizational
hierarchies are central to Bureaucracy Theory.
It is the basis for the systematic formation of any organization and is designed to ensure
efficiency and economic effectiveness. It is an ideal model for management and its
administration to bring an organization‘s power structure into focus.

Behavioral Management Theory Increasingly complex industries and organizations gave rise
to more human interests in the workplace. Management theories began to include more people-
oriented methods. Human behavior and satisfying the interpersonal needs of employees became
more central to management. A manager practicing Behavioral Management Theory might
motivate teamwork through fostering a collaborative atmosphere There are two major theories
that make up Behavioral Management Theory:
 a. Human Relations Theory- Human Relations Theory considers the organization as a social
entity. This theory recognizes that money alone is not enough to satisfy employees. Morale
is integral to employee performance. The major weakness of this theory is that it makes
several assumptions about behavior.

b. Behavioral Science Theory- Behavioral Science Theory combines elements of

psychology, sociology, and anthropology to provide a scientific basis. It examines why
employees are motivated by specific factors, such as social needs, conflicts, and self-
actualization. This theory recognizes individuality and the need for managers to be sociable.

Modern Management Theory Modern organizations must navigate constant change and
exponential complexities. Technology is an element that can change and upend businesses very
rapidly. Modern Management Theory seeks to incorporate these elements with human and
traditional theories. A manager practicing Modern Management Theory might use statistics to
measure performance and encourage cross-functional cooperation.

Three major modern theories comprise Modern Management Theory:

a. Quantitative Theory- Quantitative Theory arose out of the need for managerial
efficiency during World War II. It was developed using experts from multiple scientific
disciplines to solve the issues around integrating systems of people, materials, and
systems. This theory was developed primarily to enhance and support military decision-
making.

b. Systems Theory- Systems Theory views management as an interrelated component

of the organization. Instead of viewing the organization as a series of silos, each
department is part of an overall system or organism. Management must support goals
and process flows that serve the overall organizational health.

c. Contingency Theory- Contingency Theory was developed by sociologist Joan

Woodward after she examined why some companies performed better than others. She
found that high performing organizations make better use of technology and their
managers made better decisions in situational contexts. This theory recognizes that
effective managers must be adaptable to unique situations and circumstances.

MANAGEMENT PRACTICES
Management practices are the working methods and innovations that managers use to make the
organization more efficient. Steps to undertake to improve management practice include:

• Economic incentives for everyone. Managers should not be the only ones with extra
pay. Do not underestimate how much financial incentives can motivate the rest of the
workers, just make sure they deserve it.

• Give regular, meaningful feedback. Employees always respond better to a manager

that takes its time to provide useful feedback, even if it is negative. It shows that they care
about their work.
 • Employees are also individuals, show them respect. Managers should not treat their
employees like rubbish. An employee that feels respected will do its best to correspond
that respect.

• Managers must train. Learning does not stop with a degree. Manager must continue
training; new problems require new skills.

• Support your employees. Let the employees know that the managers are there for them
when they need it.

• Acknowledge the employee’s emotions. Managers must understand that workers have
feelings and how to deal with them, they are people, not machines.

• Leadership by example. Practice what you preach. Managers who act in ways that the
employees do not respect, like hypocrisy, will find its employees unmotivated.

• Keep up with new technologies. Managers need to be updated regarding the new
technologies available to make the organization to stay competitive. Upgrade or die,
simple as that.

IMPORTANCE OF MANAGEMENT THEORY

Why Study Management Theories?

1. Increasing Productivity One of the reasons why managers should be interested in

learning management theories is because it helps in maximizing their productivity. Ideally,
the theories teach leaders how to make the most of the human assets at their disposal.
So, rather than purchase new equipment or invest in a new marketing strategy, business
owners need to invest in their employees through training.
It can be seen in Taylor‘s scientific management theory. As mentioned earlier, Taylor
proposed that the best way to boost workers‘ productivity was by first observing their work
processes and then creating the best policies.

2. Simplifying Decision Making Another area where management theories have proven to
be useful is in the decision-making process. Max Weber proposed that hierarchical
systems encourage informed decision-making. A report written by the Institute for
Employment Studies suggests that flattening the hierarchy paves the way for local
innovation while speeding up the decision-making process. Flattening out entails getting
rid of job titles and senior positions to inspire a cohesive work environment.

3. Encouraging Staff Participation- Management theories developed in the 1900s, aimed

at encouraging interpersonal relationships in the workplace. One such theory that
encouraged a collaborative environment is the human relations approach. According to
this theory, business owners needed to give their employees more power in making
decisions.

Concepts at the Workplace

Theoretical concepts in the workplace determine the company culture of an office or place of
business. Concepts should be conscious decisions by company management and executives
and should be clearly communicated to employees so there is no confusion. Theoretical concepts
in the workplace range from how employees work, dress, or act, as well as any other concept
that affects the working environment in a workplace.

• Behavior – One workplace concept relates to the behavior of employees in the

workplace. Some aspects of this concept are determined by the law, such as sexual
harassment policies and other types of behavior that violate the law. Other aspects are
determined by the company. For example, some companies are conservative when it
comes to socializing with other employees, while other companies encourage frequent
social interaction as the executives believe that when you work with friends in a
comfortable environment, you are more productive
• Work Style – A company's work style is also a workplace concept. For example, one
style might be to assign individual tasks to people, who work on those tasks alone for the
most part. Another might be to group employees into small teams and give those teams
projects to collectively work together.
• Dress and Appearance – The overall appearance of employees is another concept
executive should discuss. For example, some companies require employees to dress up
for work, while others allow shorts and flip flops. Business casual is a common style of
dress for many companies, which is slightly dressed up but still comfortable. The
appearance of a company's employees should reflect the overall company culture and be
appropriate for the industry; financial and legal institutions typically have more formal
dress codes than small software companies.
• Workplace Atmosphere – The appearance of the workplace is also a workplace concept
to determine. For example, some offices are divided into cubicles, while other companies
prefer large, open spaces to form more of a community feel. Also, some executives bring
in games or recreational areas for employees to unwind and take breaks from work, and
make the workplace fun, while others see those elements as distractions.
• Communication – it is an important part of any workplace. Executives should decide
how employees will communicate with each other in the workplace. Technology has
created a number of ways to communicate by email, phone calls, instant messaging and
online forums. These methods often replace the most traditional form of communication
-- face to face conversation -- for many companies.

MOTIVATION MANAGEMENT THEORIES

1. Maslow’s Hierarchy of Needs
According to Smith & Cronje (1992), the way Maslow‘s theory is explained relies on the fact
that people want to increase what they want to achieve in life and their needs are prioritized
according to their importance. Deriving from the hierarchy of needs by Maslow, content
theories of job satisfaction revolve around employees‘ needs and the factors that bring them
a reasonable degree of satisfaction (Saif et al., 2012). Based on the basic physical, biological,
social, and psychological needs of human beings, Maslow came up with a five-stage theory
that places the needs of the individual in different categories and prioritizes their attainment.

These categories, in order of decreasing priority, are:

 • physiological needs (food, shelter, clothing);
• safety and security needs (physical protection);
• social needs (association with others);
• esteem needs (receiving acknowledgement from others); and
• self-actualization needs (the desire for accomplishment or to leave behind a
legacy).

Maslow‘s hierarchy of needs forms the basis of theories that try to explain job satisfaction.
Teachers, like all people, have needs that have to be satisfied. Besides the basic needs for
food, shelter and clothing, safety from physical, harm, and social interaction, they also need
the recognition and appreciation of students, colleagues, and parents.

2. Herzberg’s Two-Factor Theory/Motivator-Hygiene

This theory, also known as Motivator Hygiene, emanated from a study conducted among
accounts and engineers to determine what makes an individual feel good or bad about their
job (Saif et al., 2012). Regarding ‗satisfiers‘, Herzberg noted that there were five features of
work that bring about satisfaction, namely achievement, recognition, the job itself,
responsibility and advancement. Golshan, Kaswuri, Agashahi and Ismail (2011:12) assert that
organizations are increasingly applying Herzberg‘s theory to create opportunities for
―personal growth, enrichment and recognition‖ among their employees. Employees should
be promoted after completing certain stages of their career and should receive recognition for
special achievements – for example, when they produce exceptional results in their subject
areas; on a more basic level, they should also be given responsibility to determine how to
handle tasks that relate to their jobs

3. McGregor’s X and Y Theories,

Douglas McGregor is the theorist credited with developing these two contrasting concepts.
More specifically, these theories refer to two management styles: the authoritarian (Theory X)
and participative (Theory Y).
In an organization where team members show little passion for their work, leaders are likely
to employ the authoritarian style of management. But if employees demonstrate willingness
to learn and are enthusiastic about what they do, their leader is likely to use participative
management. The management style that a manager adopts will influence just how well he
can keep his team members motivated.
Theory X holds a pessimistic view of employees in the sense that they cannot work in the
absence of incentives. Theory Y, on the other hand, holds an optimistic opinion of employees.
The latter theory proposes that employees and managers can achieve a collaborative and
trust-based relationship. Still, there are a couple of instances where Theory X can be applied.
For instance, large corporations that hire thousands of employees for routine work may find
adopting this form of management ideal.

4. McClelland’s Need Achievement Theory

 McClelland‘s need achievement theory postulates that some people are driven to success
through seeking ―personal achievement rather than rewards themselves‖ (Saif et al., 2012,
p.1387). This theory is readily applicable to academic environments and explains why some
teachers are high achievers, despite the difficulties they face: they set themselves high goals
and achieving these goals is what drives them. Alderfer‘s ERG theory is related to Maslow‘s
hierarchy of needs but reduces Maslow‘s five categories of a need to three; namely,
relatedness being (esteem/social needs), then growth being (self-actualization) and
existence which is (security/physiological needs).

5. The Equity Theory

Adams' Equity Theory is named for John Stacey Adams, a workplace and behavioral
psychologist, who developed his job motivation theory in 1963. Much like many of the more
prevalent theories of motivation (such as Maslow's Hierarchy of Needs and Herzberg's
Two-Factor Theory), Adams' Equity Theory acknowledges that subtle and variable factors
affect an employee's assessment and perception of their relationship with their work and their
employer. The theory is built on the belief that employees become de-motivated, both in
relation to their job and their employer, if they feel as though their inputs are greater than the
outputs.

6. Value – Percept Theory

Individual‘s values determine their satisfaction on their job because employees in organizations
hold different value systems, therefore based on this theory, their satisfaction levels will also
differ. Having a look at Value – Percept theory, discusses that job satisfaction depends on
whether you grasp that your job supplies the values that you value the most.

7. Vroom’s Expectancy Theory

Assumes that behavior results from conscious choices among alternatives whose purpose it
is to maximize pleasure and to minimize pain. Vroom realized that an employee's
performance is based on individual factors such as personality, skills, knowledge, experience,
and abilities.

8. Porter-Lawler Model

The Porter and Lawler theory of motivation assumes that rewards cause satisfaction and that
sometimes performance produces reward. They hypothesize that the relationship between
satisfaction and performance is linked by another variable rewards. They see good-
performance leading to reward which lead to satisfaction. It is a multi-variable model and
explains the complex of relationship among motivation, performance, and satisfaction. They
argue that satisfaction does not always lead to performance. Rather is reverse is true because
people can become complacent after having achieved satisfaction once. On the other hand,
performance can lead to satisfaction if the reward systems are effective

FUNCTIONS, ROLES AND SKILLS OF A MANAGER

FUNCTIONS OF A MANAGER
Managers just don't go out and haphazardly perform their responsibilities. Good managers
discover how to master five basic functions: planning, organizing, staffing, leading, and
controlling.

- Planning: This step involves mapping out exactly how to achieve a particular goal. Say, for
example, that the organization's goal is to improve company sales. The manager first needs
to decide which steps are necessary to accomplish that goal. These steps may include
increasing advertising, inventory, and sales staff. These necessary steps are developed into
a plan. When the plan is in place, the manager can follow it to accomplish the goal of
improving company sales.

- Organizing: After a plan is in place, a manager needs to organize her team and materials
according to her plan. Assigning work and granting authority are two important elements of
organizing.
- Staffing: After a manager discerns his area's needs, he may decide to beef up his staffing
by recruiting, selecting, training, and developing employees. A manager in a large
organization often works with the company's human resources department to accomplish this
goal.

- Leading: A manager needs to do more than just plan, organize, and staff her team to achieve
a goal. She must also lead. Leading involves motivating, communicating, guiding, and
encouraging. It requires the manager to coach, assist, and problem solve with employees.

- Controlling: After the other elements are in place, a manager's job is not finished. He needs
to continuously check results against goals and take any corrective actions necessary to
make sure that his area's plans remain on track.

All managers at all levels of every organization perform these functions, but the amount of time
a manager spends on each one depends on both the level of management and the specific
organization.

SKILLS OF A MANAGER

Good communication – Having good Communication skills is probably the most

important skill of all for managers to have. Unless you can properly communicate with
those you supervise, the rest of the skills really will not matter. In numerous types of
management tasks, the most common and first thing that needs to be done is to
communicate your opinions, expectations and needs to others. You should not be a
manager if you do not enjoy working with people. You also need to be able to send others
the right messages and make sure that they understand you. The type of power that you
use for persuading others on your views is also very important.

Good Organization – Probably the second most important skill that you can have as a
manager is the ability to organize. You need to be able to come up with a plan and then
schedule, organize, and follow it. This also involves understanding your company's
 processes and rules as well as among individuals. You must be able to predict what will
happen and at what time.

Team Building – Good Managers know how to keep their teams intact. The well-being
of team members does not benefit from having competition within the team. However,
competition between teams can be very stimulating and healthy. If one of the team
members speeds ahead and leaves the rest of the members behind without helping them,
the team will most likely fail. A good Manager will notice these irregularities very easily.
He or she will attempt to correct the situation through having discussions with the team,
mostly through listening to members. To a great extent, a successful and healthy team
relies on the trust between members and with the Manager. If a manager can build trust
systematically, the team members will feel much more committed and appreciated.

Leadership – It is not enough to just listen to the problems of coworkers. A good Manager
needs to solve these problems and prove that he or she is committed to the goals of the
team. It is also the Manager's responsibility to define goals along with team members and
then assign responsibility to various team members clearly. A good Manager will have a
clear vision in terms of the direction he or she wants the team to be headed in. Team
members need to be 'infected' with this vision so that everyone is headed in the same
direction.

Ability to Deal with Changes Effectively – Many Managers are thoroughly familiar with
the entire working process. This allows them to do things in an almost automatic manner.
A good Manager is adaptable and flexible. When faced with obstacles, he or she can
react quickly. Stress does not prevent the Manager from making the right decisions for
the team and company.

Domain Knowledge – Good Managers have a thorough understanding of the process

he or she is managing, including the type of tasks that team members are performing and
how they are working. This skill is not quite as important as the other ones are. However,
in some cases, not having it will mean that the Manager and the team do not ever work
at maximum capacity or use all their potentials due to a lack of understanding of one
another.

ROLES PERFORMED BY MANAGERS

A manager wears many hats. Not only is a manager a team leader, but he or she is also
a planner, organizer, cheerleader, coach, problem solver, and decision maker — all rolled
into one. And these are just a few of a manager's roles.
In addition, managers' schedules are usually jam packed. Whether they're busy with
employee meetings, unexpected problems, or strategy sessions, managers often find
little spare time on their calendars. (And that doesn't even include responding to e mail!)
In his classic book, The Nature of Managerial Work, Henry Mintzberg describes a set of
ten roles that a manager fills. These roles fall into three categories:
a. Interpersonal: This role involves human interaction.
b. Informational: This role involves the sharing and analyzing of information.
c. Decisional: This role involves decision making