AMD 1 Management Principles January 2013 - Mancosa Admin

203 Pages·2012·3.1 MB·English

DIPLOMA IN ADVANCED MANAGEMENT

MODULE 1

MANAGEMENT PRINCIPLES
STUDY GUIDE

Copyright © 2013
MANAGEMENT COLLEGE OF SOUTHERN AFRICA
All rights reserved; no part of this book may be reproduced in any form or by any means, including photocopying machines,

without the written permission of the publisher

REF: POM 2013
TABLE OF CONTENTS

Section Title of Section Page
Introduction 3
1 Introduction to Management 8
2 Evolution of Management Theory 39
3 The Management Environment 77
4 The Management Process 109
5 Contemporary Management Issues 151
Bibliography 201

AIMS OF THIS MODULE

The broad aims of this module are to:

• Introduce the learner to fundamental management principles and practices
• Develop the learner’s understanding of the evolution of management theory
• Develop the learner’s understanding of the management environment and its application
• Develop the learner’s understanding of the management process and its application
• Develop the learner’s understanding of contemporary management issues and their application
Principles of Management

INTRODUCTION

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Principles of Management

Introduction

This module, Principles of Management, forms an integral part of the MANCOSA Certificate in Management Studies
qualification and serves to introduce the learner to the fundamentals of management. In so doing, the module
explores the evolution of management theory, the management environment, the management process, as well as
contemporary issues in management.

Contents and Structure

Section 1: Introduction to Management

This first section introduces the learner to the concept of management. In this section the nature and definition of
management are examined, as are the various levels of management, areas of management and managerial skills.
The relationship between management and organizational performance is studied and the scope of, and current
challenges for management are explored.

Section 2: Evolution of Management Theory

Section 2 explores the evolution of management theory. Here, the importance of theory is established, and various
management theories are examined.

Section 3: Management Environment

This third section examines the dynamics of the management environment. In so doing the characteristics of the
macro-environment, market environment and micro-environment are studied. The interface between the organisation
and the environment is also examined.

Section 4: The Management Process

Section 4 explores the nature of the management process. In this section the four fundamental management
functions of Planning, Organising, Leading and Controlling (POLC) are examined. The various areas of management
are also studied.

Section 5: Contemporary Management Issues

This section examines certain contemporary management issues and explores the implications which these have for
the current day manager. Motivation, decision making, communication and groups and teams are the four issues
which are dealt with.

How to Use the Study Guide

Do not try to work through the Study Guide in a few long sessions. You will study more effectively if you divide your
study into regular two-hour sessions.

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Principles of Management

As you work through the Study Guide you will come across:
• Think Points
• Activities
• Reading Activities
• Self Check Activities
• Study Group Discussion Activities
• Sample Examination Questions

These are designed to help you study and prepare for the examinations.

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THINK POINT

Think Points require that you stop and think critically about a particular management situation.
They also may require that you apply a particular management principle.

ACTIVITY

Activities require you to carry out specific tasks. The aim of the Activities is to give you

an opportunity to apply what you have learned.
.

READING ACTIVITY

Each section contains at least one reading activity. The reading activity requires that
you read one or more of the recommended journal articles and then answer
questions relevant to the journal article. The majority of the recommended journal
articles are available from the Emerald library facility which learners may access via

MANCOSA’S website.

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Principles of Management

SELF CHECK ACTIVITY

Occa sionally you will be required to assess your grasp of concepts by applying concepts
to specific situations. Suggested answers to these activities are provided at the end of each

section.

STUDY GROUP DISCUSSION

Study Group discussion activities are provided at the end of each section of this Study Guide.

You must have worked through the relevant section and the corresponding pages of the
prescribed text before meeting as a Study Group. The Study Group Discussion questions and
activities provide an opportunity for learners to apply what they have learnt, to share
experiences with their fellow learners and to learn from each other.

SAMPLE EXAMINATION QUESTIONS

Sample examination questions are provided at the end of each section. These provide
the learner with an understanding of the type of questions which may be asked in the
examination.

Module Assessment
• Assignment
You will be required to complete and submit an assignment. This assignment is assessed as part of your
coursework. Therefore, it is very important that you complete it.

• Examination
An examination will be written at the end of each semester. The assessment strategy will focus on application of
theory to practice.

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Principles of Management

Reading

• Prescribed Reading

The prescribed text for this module is:
Smit, P.J., Cronjé, G.J. de J., Brevis, T. and Vrba, M.J. (2011) Management Principles: A Contemporary Edition
for Africa, Fifth Edition. Cape Town: Juta & Co.
• Recommended Reading:

Each section has a list of recommended books and recommended journals, which allow you to develop an
understanding of the issues beyond the perspective of the prescribed textbook and Study Guide. The majority of
recommended journal articles listed per section are available from the Emerald online library facility which is
accessible via Mancosa’s website.

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Principles of Management

SECTION 1

INTRODUCTION TO MANAGEMENT

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CONTENTS

Learning Outcomes

Reading

1.1 Introduction

1.2 Nature of Management

1.3 Definition of Management

1.4 Levels of Management

1.5 Management and the Organisation

1.6 ‘Old’ and ‘New’ Organisations

1.7 Management and Organisational Performance

1.8 Scope and Challenges of Management

1.9 Summary

Self Check Activity

Study Group Discussion

Sample Examination Questions

LEARNING OUTCOMES

The overall outcome for this section is that, on its completion, the learner should be able to demonstrate an
understanding of fundamental management issues. This overall outcome will be achieved through the learner’s
mastery of the following specific outcomes, in that the learner will be able to:

1. Explain the relationship between the organisation and management.

2. Discuss the management process and explain the relationship between the management process and its
environments.

3. Formulate a workable definition of management.

4. Identify the levels of management and critically discuss the activities which are performed at each level.

5. Identify and critically discuss the areas of management, manager role distribution and managerial skills.

6. Identify and critically discuss the concepts of, and key differences between, the ‘old’ organisation and the ‘new’
organisation.

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Principles of Management

7. Identify and critically discuss the measures of managerial and organisational performance.

8. Identify and critically discuss contemporary management challenges.

READING

Prescribed Reading:

• Smit, P.J., Cronjé, G.J. de J., Brevis, T. & Vrba, M.J. (2011) Management Principles:
A Contemporary Edition for Africa, Fifth Edition. Cape Town: Juta & Co. Chapter 1 (pp 3 – 22)
and Chapter 18 (pp 488 – 506).

R ecommended Reading:

Books

• Botha, S., Cunningham, P., Musengi, S., Visser, K., Williams, O., Lotz, J., Booysen, K.,
Stewart Smith, A., Bosch, A., & Banhegyi, S. (2009) Management: Fresh Perspectives. Cape Town:
Pearson Education South Africa. pp 1 – 18 (Chapter 1).
• George, J.M. & Jones, G.R. (2006) Contemporary Management: Creating Value in Orgainizations.
Fourth Edition. Boston: McGraw Hill. pp 2 – 39 (Chapter 1).
• Hellriegel, D., Jackson, S.E., Slocum, J., Staude, G., Amos, T., Klopper, H.B., Louw, L. & Oosthuizen, T.
(2005) Management. Second South African Edition. Cape Town: Oxford University Press.
pp 3 – 26 (Chapter 1), pp 331 – 355 (Chapter 12).

Journals

• Arumugan, S. (2006) “Competencies for Multi-Cultural Leadership.” HR Future. June.
• Mohonathan, S. (2008) “Trends, Innovation & Skills Development: Technology is
Creating the New World of Work.” HR Future. May.
• Mintzberg, H. (1990) “The Manager’s Job: Folklore and Fact” Harvard BusinessReview,
Mar – Apr, pp 163 – 170.
• Moss Kanter, R. (1989) “The New Managerial Work” Harvard Business Review Nov - Dec, pp
13 – 20.
• Rory, D. (2006) “How ‘free’ is the free-worker? An investigation into the working arrangements
available to knowledge workers.” Personnel Review. Vol 35, No. 1, pp 78 – 97.

Journals (continued)

• Smanjak, Peter (2006) “Know Your Company’s HIV Risk.” HR Future. May.
• Wade, L. (2006) “HIV / AIDS Strategic Shift.” HR Future. March.

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