Nigerian Institute of Management (Chartered) : Management Principles and Practice
Nigerian Institute of Management (Chartered) : Management Principles and Practice
Nigerian Institute of Management (Chartered) : Management Principles and Practice
NIGERIAN INSTITUTE
OF MANAGEMENT
(CHARTERED)
MANAGEMENT PRINCIPLES
AND PRACTICE
(SMPE 101)
STUDY PACK
MANAGEMENT PRINCIPLES
AND PRACTICE
(SMPE 101)
STUDY PACK
Website: www.nim.ng
E-mail: mec@nim.ng or nysc@nim.ng
While expecting every candidate to read as much as possible on their courses, the
Institute's role in preparing this study pack is to treat in one publication all the topics
covered by the syllabus for the particular course.
This will enhance focused study on the part of the candidate. This pack is written and
reviewed by experts on the subject. The writing is reader-friendly while the issues
discussed are current, with the general treatment of topics within the contemporary time.
The topics are treated in a way not only to provide general and theoretical knowledge but to
enhance practice.
Reviewed questions are provided at the end of each pack to facilitate understanding.
We wish to express our utmost appreciation to our faculty of experts for their invaluable
development, writing and review of these study pack series.
MANAGEMENT
FOREWORD iv
their Remedies 27
Bibliography 38
CONCEPTS IN MANAGEMENT
1.1. OBJECTIVES
At the end of the lecture, students should be able to:
⚫ Define the term management and explain its role in organisations
⚫ List and describe the roles and functions of managers
⚫ Itemize rewards and challenges of managers in Nigeria.
⚫ Clearly express the skills managers require, to achieve corporate goals.
⚫ Differentiate between the functions of managers and non managers
⚫ Understand management concepts, theories and models
1.2. INTRODUCTION: The term management may mean different things to different
people. It can refer to the people who run an organisation (e.g. our management has
recommended a wage increase for all staff) or the activities that take place high up in
an organisation (e.g. there is an urgent need to improve the management of
some Nigerian banks) or the way the organisation is run (e.g. Most progressive
companies in the world have a democratic management.)
When some Nigerians respond to enquiries about their welfare with a melancholic,we
are managing to survive' they are using the term correctlyas we shall see in the next
section. Many of us need to manage (understand, enjoy and protect) our health,
marriages or time. Management is pervasive and is practised by Senior professionals
for example in engineering, education and health, practice management. That is why
management is an umbrella profession and the Nigerian Institute of Management,
chartered by an Act of Parliament in 2003, is called the mother of professional
institutes!
1.2.2 Who are managers? If management involves the use of resources to achieve
objectives then all employees play a role in the management of themselves, their
work or others in their organisation. Therefore every job has management content
and there is a bit of management in us all.
MANAGERS NON-MANAGERS
Can delegate tasks Not delegate tasks
Can represent others Generally do ot represent others
Have authority over others Do not have authority over others
Have discretion over the use of resources – Do not have authority over use of
time, money e.t.c resources –time, money e.t.c
Not responsible for decision
Are responsible for decision making making
• Perform limited technical aspects of the
Job.
• Technical means a specialised area Jobs are purely technical and not
of work e.g. marketing or engineering managerial
Do more of planning, organising, Perform little of managerial
controlling, coordinating etc tasks.
Figurehead: Concerned with the ceremonial and routine duties associated with the
manager's position e.g. signing of documents, receiving visiting dignitaries, entertaining
guests, etc.
Leader: He inspires and motivates staff to put in their best, hires and fires, trains, sets goals,
appraises performance and distributes rewards
Liaison: He serves as link between the organization and the internal and external
environments e.g. meeting government or community agents to settle thorny issues.
Entrepreneur: He searches for and takes initiative and creative action. He designs and
initiates changes with the support of other staff.
Resource Allocator: He decides who gets what resource, when and how.
Negotiator: He negotiates with internal and external parties to ensure that corporate goals
are not derailed e.g. negotiating with unions, suppliers and other stake holders.
Monitor: He scans the environment for relevant information using formal and informal
channels, to understand and take advantage of the environment.
1.4.3 A manager requires special skills to manage and achieve results. He should be able to plan
and coordinate his or her work, organise, recruit, select, train, motivate and evaluate
workers. He should also be able to strategize (advanced planning) and help the organisation
prosper now and in the future.
Junior managers require more of technical, interpersonal and managerial skills while
their senior colleagues require more of interpersonal, managerial and conceptual
skills.
*For these skills to be effective, a manager should have many of the attitudes, habits
and values espoused in the rest of this study pack.
1. Visit any organisation of your choice and note the management functions and duties
performed most and least by managers. Suggest reasons for your observations.
2. Study the differences between managers and non-managers in the
organisation selected above. Rate the managerial competence in the top three
managers on scale of 1-10 with 1 being the least score possible.
3. Chronicle the benefits and problems faced by your boss because of his position in the
office. How should he overcome the challenges? Do you want to also be a boss?
Why?
Answer the question what do managers do? by noting and timing the duration
4. of the office activities of a manager you are familiar with for a week
e.g. reading correspondence, reading newspapers, attending meetings,
receiving visitors, writing reports, having a nap etc. Are you surprised with
your research results?
MANAGEMENT THEORIES
2.1 INTRODUCTION
A theory is a set of proved assertions and principles that explain a concept,
behaviour, observation or event. Management theories usually explain, evaluate,
apply or describe management concepts. Examples are the scientific management,
human relations, systems and behavioural theories of or approaches to management.
B. The Hawthorne Experiment: Elton Mayo and his associates, beginning from
1927, carried out a series of experiments at the Hawthorne plant of the Western
Electric Company in Cicero, Illinois, USA. They determined the effect of factors
like hours of work, duration of work, duration of rest, illumination and noise on
workers' fatigue and productivity levels and had unexpected results. When noise
was increased or the work place illumination reduced, productivity increased
instead of reducing. They concluded that even more than physical work factors,
psychological and social work factors like morale, a sense of belonging, good
interpersonal relations, and people–based management affected productivity
and fatigue at work. This is the Hawthorne Effect.
C. The HR theory: The theory resulted from the revolutionary insights of the
Hawthorne Studies. It stressed the harmony of organisation and personal needs. It
also emphasised the importance and influence of psychological and social factors
like morale, employee participation, effective communication, positive group
interactions, humane leadership and recognition on organisational efficiency,
productivity and the general wellbeing of workers and the organisation. HR theorists
believe that these psychosocial determinants of employee satisfaction and
productivity should be given more prominence in organisational policies than
physical ones like money and facilities. Do you agree?
B. Features of a system:
• It has sub-systems and sub-units
• The sub-systems and subunits are linked and integrated into
a single whole system.
• All sub-systems and units influence one another and the whole system
• The system has boundaries and interacts with the external environment.
i. Describe the Hawthorne experiments of Elton Mayo and his associates. How did
they give rise to the Human Relations Theory? Is the theory still relevant today?
ii. Compare and contrast the principles of Scientific Management and Behavioural
theories. Which one is more applicable to Nigerian management? Why?
iii. What is the Systems Theory of management? Explain briefly how your
organization utilises the theory in achieving its objectives. Why?
iv. What management problems did the Scientific Management Theory seek to
solve? What methods were used? Are they still used by managers in Nigeria?
v. Mention some criticisms of the human relations theory. Are they justified?
MANAGEMENT MODELS
3.1 OBJECTIVES
At the end of the lecture, students should be able to:
⚫ Explain the meaning and importance of management models with
relevant examples
⚫ Describe the strategies, necessary conditions, benefits and
problems of participatory management
⚫ Use the relevant diagram to explain the concept and process
of the management grid model of management
⚫ Outline the process of and necessary conditions for
management by objectives
⚫ List the benefits and problems associated with the management
grid and MBO models of management
⚫ Describe how Nigerian cultural practices have affected management.
(ii) A concern for people (and workers) is manifested by the following interests and
behaviours of managers - good working conditions, good interpersonal and group
behaviour, trust in the staff, respect for staff welfare and self worth. The concern for
people in a manager ranges from 9 (a maximum) to 1 (a minimum).
(iii) People have different management styles depending on how much of concern for people
and concern for production they have. These can be shown on a management grid with
concern for production on the X- axis and concern for people on the Y- axis (diagram).
The following are five out of a total of 81 possible management styles depicted on the
management grid.
⚫ (9, 1) A maximum concern for production and a minimum concern for
people or autocratic task management. Managers in this position on the grid have a
very low regard for the opinion and welfare of staff but a superlative interest in
achieving work objectives, increasing the efficiency and quality of production,
processes, procedures, systems and products.
⚫ (1, 1) A minimum concern for both production and people or impoverished/ laissez faire
or (No Future Ambition - 'NFA') management. The managers have little concern for work
or workers and exert minimum effort at work. They abandon their jobs and obligations
and act as reluctant advisers, message transmitters and consultants to the workers. If the
subordinates of such managers are not self motivated and self controlled, they degrade
into low motivation, low commitment, low loyalty, moonlighting and perambulation.
⚫ (1, 9) A minimum concern for production and a maximum concern for people or
country club management. The managers strive to make staff happy, relaxed, friendly
and comfortable by maintaining good working environments and conditions; using
participatory techniques, trust and friendship to control and displaying a liberal
attitude to work and work activities. Little attention and minimum efforts are given to
achieving work objectives or upgrading procedures and products
⚫ (5, 5) An average concern for both production and people or ‘a middle of the road’ or
‘balanced management’. The managers work towards achieving work goals while
ensuring that staff welfare, morale and work conditions are not compromised
(1,9) (9, 9)
Y-AXIS
9
6
(5,5)
Concern For 5
Workers
2
(1,1) (9,1)
1
1 2 3 4 5 6 7 8 9
X-AXIS
1) People can know the management styles they use with their subordinates by
consulting the grid.
2) They can also identify needed personal and corporate changes and take appropriate
actions.
3) The management grid can be used to evaluate different management styles and
recommend appropriate ones.
4.) The management grid helps managers improve interpersonal and group relations.
1) The model is classified and cannot explain why a manager has a particular style.
2) Essentially, a manager requires the support of co- trainees, his subordinates and
other stakeholders to evaluate himself or herself with the management grid.
MBO is a training development, evaluation, planning and motivational tool all rolled in
one.
B. Process of MBO.
⚫ Managers and their staff clearly study, understand and buy into organisational or
corporate goals.
⚫ Managers and their staff also understand and accept their departmental goals
⚫ Managers and staff design measurable work objectives with clear work standards and
time frames, from departmental goals
⚫ Work activities, facilities, evaluation techniques and rewards for target achievement
are agreed
⚫ Workers are given the space, time, facilities and other necessary support for target
achievement.
⚫ Departmental and individual work performance through target achievement is
cooperatively evaluated, as agreed, by the managers and subordinates
⚫ A post evaluation feedback identifies unsuitable performance, targets, standards and
activities and recommends appropriate corrective action. Appropriate rewards are also
recommended for different levels of target achievement.
D. Advantages of MBO
⚫ Mutual goal setting and appraisal clarifies goals and highlights critical performance
areas to all stakeholders.
⚫ Mutual goal setting and appraisal stimulates superlative performance from subordinates.
⚫ MBO also improves management-worker relationship through the series of
interactions that are part of the process.
⚫ MBO makes staff training and evaluation easy as they are based on agreed targets.
⚫ Rewards are also easy and objective, based on agreed targets.
⚫ Organizational, departmental and unit goals and objectives are integrated and networked in
MBO
⚫ Career planning and development are easy and objectives-based in an MBO organization.
4.2.2 Factors that influence the values, attitudes and behaviours of managers.
Parental upbringing, past work and other life experiences, the nature of friends and family,
health status, personality, educational and intelligence levels, past failures and successes,
financial status of parents, present financial status, nature of employees, behaviour of
superiors and colleagues, organisation culture, rules, climate and motivation, religious
inclination of the manager etc.
The amount of motivation in workers greatly determines those who come early or come late to work
at the flimsiest excuse, those who work hard or casually, or those who seek more responsibility or
dodge responsibility. Even in family, religious and societal affairs (like doing house chores, praying,
voting, keeping a clean environment, keeping the laws of the land) the motivated ones are more
diligent. An unmotivated person gets up in the morning, prepares reluctantly for work, gets to the
office and works grumpily. He or she infects customers and co- workers with his/her mood.
What is the remedy?
A. Need –A need is an inner desire, feeling or urge for something or someone that gives
rise to tension if not fulfilled. Human behaviour is need and goal directed. Unsatisfied needs
motivate and push action, for example:
· The need to pass an examination motivates a serious study for the examination.
· The need for companionship motivates the search for a partner or friend
· The need for job promotion/achievement motivates hard work
· The need for an NYSC award motivates 'corpers' to work and serve well.
B. Motives are attitudes, feelings, urges and predispositions about something or someone
that stimulate or inspire action or behaviour e.g. My motive for joining the NDLEA is to
support the zero-hard drugs policy of government. People's motives develop from their
upbringing, education, environment, the friends they keep, their wealth, social status etc.
B. Criticisms - It does not take workers' needs and characteristics into consideration. Only job
content and job context factors are considered
• One person's dissatisfiers can be motivators to others
• Some factors are both satisfiers and dissatisfiers
• In some societies dissatisfiers are great motivators
Theory X managers believe that workers are inherently lazy, hate responsibility, hate work
and are un-ambitious. They want to be directed and given security.
Theory Y managers believe that workers love work, are self motivated, creative and
committed, seek responsibility at work and are intellectually capable. They manage by
worker-participation, humane interpersonal relations, decentralisation of authority, a
democratic leadership style and a freer organisational climate.
Criticism
⚫ Needs may not be hierarchically fixed
⚫ A person can be motivated by randomly selected motivators and not in a step-wise
fashion.
⚫ People who are being motivated by basic physiological needs also want to be
respected (esteem need) and accepted in the group (belongingness need)
ADVANTAGES
⚫ Considers the needs of individuals in the motivation process.
⚫ It is realistic because the value placed on motivators depends on individual perception.
⚫ It supports a need for a fit between objectives of organization and workers' personal
objectives for high motivation.
Management implications:
⚫ Managers should design a work environment that allows workers to meet their own
objectives while meeting corporate objectives.
Managers should advise subordinate to reduce their expectancies and valence to avoid de-
⚫
motivation.
Managers shouldn't promise what they can't offer staff.
⚫ Poor management credibility will reduce motivation
⚫ Workers' satisfaction with a motivator depends on their perception and not solely on its
⚫
absolute value.
It is important to consult with workers in designing motivators.
⚫
5.2.9 Motivators- These are tangible and intangible measures or vehicles of motivation and help
workers meet their needs. Organisations use motivators to increase the zeal,
inspiration and performance of workers.
• Financial e.g. A good salary or commission, bonuses, profit sharing, stock options,
allowances, gifts, loans, grants, good retirement benefits, etc.
5 .3 Tutorial questions:
1. Is your boss a Theory X or Theory Y person? Give reasons for your answer.
2. Find out how the reinforcement theory can be used to
i) train dogs to sniff hard drugs in airports and
ii) make workers reduce absenteeism
3. Which Nigerian do you think has passed the esteem stage into self
actualisation? In what ways?
4. How can motivation be used to improve/increase the performance of Nigerian
Policemen?
5. Which of the motivational theories in this lesson do you think is best for
Nigerian workers? Why?
6.1 Objectives: At the end of the lecture, students should be able to:
⚫ Explain the concept 'bad management practice' with the aid of relevant examples.
⚫ List some sources and symptoms of bad managerial practices
⚫ Describe how to identify and overcome bad management practices
⚫ Thoroughly explain reasons for poor practices by managers.
Note that a bad management practice may be financially profitable or popular with
workers or acceptable to top management, but 'what is bad is bad’
i. Give the full meaning of all the abbreviations of organisations listed in the
lecture. What are their functions?
ii. Carry out an objective research to find out if many Asian managers are actually more
unethical than their Nigerian counterparts. Give reasons for your observation.
iii. What is the proportion of women to men in
a) the National Assembly and the Federal Executive Council
b) the State Houses of Assembly and the state executive councils in two
Northern and two Southern states
c) the management staff of your organisation
d) the public primary or secondary school close to you? Comment on your
findings.
iv. Why do you think that some professionals in the Federal Public Service who
earn monetised jumbo salaries still engage in 'private practice'? How can
illegal private practice be curbed?
v. What malpractices do managers in your office commit? In what ways can you
help them become more ethical?
vi. How has managerial corruption any ethnic, gender or age divide? Explain.
vii. In what ten ways can malpractices hurt managers, their families and organisations?
viii. Why are few Nigerian companies as old as Boeing, Motorola, Ford Motors,
Procter and Gamble and American Express founded in 1915,1928,1903,1812
and 1850 respectively?
Examples:
⚫ E- census: For faster and more accurate enumeration of people and for
automatic updates of data and registration of births, deaths, marriages and
other population parameters.
⚫ E- voting: using electronic means to register voters, validate election results
and for the actual voting. Nigeria presently has e-voters' registration but not
the real e-voting. Would you support online voting in national elections?
⚫ E-health can be used by health care managers to record and improve doctor
(nurse) patient interaction. Computer-aided diagnosis and surgical operations
are now commonplace. In one case, a doctor in say London can lead doctors
in Lagos in performing a delicate heart surgery.
⚫ E-ticketing enables prospective passengers to pay for their flight tickets and
make all flight arrangements from their homes or offices. A flight manager can
make all his plans without paper and pen.
⚫ E- taxation: this involves online tax assessment, tax payment and tax queries.
The Lagos state tax-system is partially computerised. Why may some tax
officials prefer face to face tax interactions?
⚫ E- budgeting, accounting, administration and statistics: it is an information and
knowledge portal that improves government-to-citizen, citizen-to-government and
citizen to citizen communication and service. In India people are encouraged to
photograph reckless drivers on their mobile phones and send pictures to the Traffic
Police via Face book. The Federal Government of Nigeria regularly sends positive
text messages about the country to Nigerians. Political campaigns, issuance of
national passports and identity cards and WAEC, NECO and JAMB examination
enrolments are few of the services that are now computerised and done on-line.
⚫ E-land administration- This is the computerisation of the records, operations
and other aspects of land administration to increase transparency, efficiency
and speed. The FCT has introduced some ICT into its land administration.
D. Customer Service: The present enlightened customer will not tolerate poor service. He
will cherish superlative service, zero defect, zero customer feedback time and customer
rewards. Companies must therefore be market-driven with a corporate marketing focus. They
must be able to thoroughly understand, meet customer expectations and even exceed them
to beat competition. Managers must also think like their customers and experience what they
experience and use the standards of difficult customers as general standards for all
customers. Virile customer databases should fuel customer service.
F. Innovative work practices- The time for permanent jobs is gone. We are now in an
era of temporary jobs, flexible working hours, flexible security, outsourcing, strategic
partnerships, bench -marking etc.
I. Down Sizing or Right Sizing: This means a reduction in the size or activity of a firm
to boost ROI, sharpen competition and reduce cost and management inefficiencies.
Overstaffing and over employment kill organisations. In what ways? But down sizing
shouldn't be misused or abused.
J. Talent management: One talented worker is better than ten un-talented ones.
Talent management is the process of developing and fostering new workers through
training and retaining current workers and attracting highly skilled ones from other
companies. Companies using this strategy know how to source, attract, select, train,
develop and promote quality employees.
L. Mentoring: A person (a mentor) with direct and relevant experience in the problem
area offers advice and suggestions to help another (a mentee or protégé). Mentoring can
be formal when it is initiated and organised by an organisation or informal when both
parties make the learning arrangement themselves. Mentoring helps to groom upcoming
employees who have the potential to move up the ladder into leadership roles.
N. Team Building:
A team is a number of persons working together with complementary skills to achieve
common goals. The members are aware of and interact with one another, act as one,
and interdependently achieve the team's task or purpose.
⚫ A mere aggregation of persons or group is not a team.
⚫ Teams don't just happen, they are built up. A good team is a result of
deliberate efforts, practices, drills, sacrifices, understanding and commitment
on the part of team leaders and members.
O. Delegation:
Authority is delegated when organizational discretion is vested in a subordinate by a
superior. Superiors cannot delegate authority they do not have whether they are
board members, presidents, vice presidents or supervisors. Equally, supervisors
cannot delegate all their authority without in effect passing on their positions to their
subordinates. The entire process of delegation involves:
⚫ The determination of results expected from a position.
⚫ The assignment of tasks to a position.
⚫ The delegation of authority to a person for accomplishing these tasks.
⚫ The holding of people in positions responsible for
accomplishment of tasks.
One cultural behaviour that has set tongues wagging in a local government council in one of
the states in Southern Nigeria is the caste system where people from particular villages and
families are seen as outcasts and unworthy of honour and civil interaction.
Mr OSU, the new Chief Personnel Officer of Ofada Local Government council, Ofada is
shunned and ignored by many indigenes and staff because his great grand father was
offered to the gods decades ago. No member of the community is expected to visit, eat with
or marry from his extended family. Accepting supervision and directives from any 'slave' is
an abomination which western education and religion have not completely eradicated.
This has created a problem in the council secretariat. The king of Ofada, HRH MOFE
MISAN is worried. The town women are planning to protest half-naked. Some council
workers are talking about postings, transfers or retirements. Even Mr OSU's messenger
believes he, as a freeborn, 'is better than oga' and wants a transfer.
Questions:
· Mention and explain five other cultural practices that can strain relationships in
modern organisations.
· Graphically describe the situation in the council secretariat and in Ofada town.
· If you were the secretary to the local government, how would you resolve the
problem? Should Mr OSU exit? Why?
Without exception, the replies seem to assume that the “traditional” executives were
incompetent. She discovered that utilizing the scientific approach was exactly what every good
manager had been doing for years. Whether a program involved marketing of a new product,
expansion of plant facilities, managerial appraisal, reorganization, or the many other areas in
which managers are called to take action, the scientific approach was precisely what good
managers had long been doing, and it was therefore not new to management.
1. What does it mean “to take a scientific management approach” to managing? List at
least six key concepts of the scientific management theory.
2. Identify important variables in a scientific management model of managing. Describe
the relationships among these variables.
3. How useful, do you think, the scientific management concepts are for managers?
What are its advantages and limitations?
Questions
1 How desirable is management by objectives ?
2 Did the NIM give her a poor counsel ?
3 Why should Femi Abiodun accept and correct his shortcomings?
Mr Jude has four managers under him and together they fashion out strategies, policies and
procedures that have been so well appreciated. But unknown to others in Niger Oilfields, three of
the managers are, according to him 'waste pipes'. Their work is below the quality expected. One of
them almost caused a riot when asked to brief labour union officials on what the company was
doing to adhere to the local content regulations of government. The second makes unbecoming
errors in his reports and briefs that are usually late. The third manager is secretly called Ali Baba by
the staff; he loves to make an extra naira from every assignment, which he does poorly, anyway. Mr
Jude relies only on Mr Essien Udeme to get things done. He has effectively cut-off, by-passed or as
the Americans would say, walked around the other three managers. Mr Jude says he is too busy to
coach and counsel the three bypassed managers and that he would not risk jeopardizing his own
career by giving them sensitive assignments.
Questions:
1. Do you agree with the by-passing strategy of Mr Jesse Jude? Give reasons for your answer.
2. How does this strategy affect Mr Udeme, the other managers and the department as
a whole?
3. What alternative strategies do you have to solve the problem of the Corporate
Affairs Department? How could it have been prevented?
4. Which of the characters in the case do you most closely resemble? How can you upgrade?
2. Drucker, P.F. (1979): Managing for Results. London, Pan Books Ltd.