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MNG2601 Texbook Summary
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- University Of South Africa (Unisa)
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Chapter 2The management process
Tersia Brevis
OPENING CASE
MTN South Africa: Best large-sized annual turnover of R34 billion in 2009. Although
employer in South Africa: 2010/2011 MTN is still a relatively young company – it opened
its doors in 1994 – it has 110 million subscribers
Since 1991, the Corporate Research Foundation across Africa and the Middle East, of which 17
(CRF) Institute has developed and run a BEST million reside in South Africa. The company’s flair
Employers methodology in South Africa, with the for innovation is seen to be its biggest advantage.
aim to identify and rate employers that are among MTN’s simplified solutions allow people from all
the best in the country and create the best working areas, no matter how remote, to have access to
conditions for their employees. In order to be communication. MTN is a company that gives its
certified as one of the country’s BEST Employers, employees every opportunity to realise their full
organisations must exceed the objective rating potential. Like many companies in South Africa,
standards in an in-depth benchmarked assessment MTN is affected by the skills shortage, particularly
of their policies in terms of the following areas: within the Information Communications Technology
organisational strategy; the human resources (ICT) industry. There is a scarcity of engineers to
function; communication; diversity management; configure modern society.
corporate social responsibility; knowledge MTN was one of the main sponsors of the 2010
management; talent management and engagement; FIFA World Cup and this opportunity has opened
employee development; performance management; a number of doors for its employees. 2010 gave
and rewards and recognition. them the opportunity to enhance their broadband
The CRF publishes best employer rankings in the capabilities and improve the network. For example,
following categories: Best 10 Overall Employers; they had to ensure that people would be able to
Best 10 Large-sized Employers; Best 10 Medium- watch the games from their handsets if desired.
sized Employers; Best 10 Small-sized Employers; Their World Cup sponsorship provided the impetus
Best Employers in Industry; and Best Empowered to develop new technology and infrastructure that
Employers. In the Best 10 Large-sized Employers, will be maintained after the event. For example, the
MTN South Africa was ranked first. company has built 3G stations across the country
MTN is a telecoms service provider, head- which will need continued maintenance and upkeep.
quartered in South Africa and operates across 24 Executive managers, general managers and
countries, predominantly in the developing world. senior managers are provided with mentors and
MTN offers voice, data and internet solutions to coaches. These mentors come from outside the
clients. It employs 4 583 permanent staff with an company and are seasoned executives who have
, CHAPTER 2 The management process
retired from other businesses and are willing to customer service. MTN also has a retail division,
lend MTN their skills and expertise. They assist which is growing at a rapid rate. In 2009, the number
managers in various areas such as their approach of retail shops increased from 18 to 235.
to market, business-related problems and issues MTN’s main objective for the near future is to
associated with behaviour in the organisation. This position the South African business strategically in
provides a valuable input from individuals who have the broadband space. Essentially, the voice telecoms
practical, independent experience. market has been saturated. Consumers are no
MTN makes various career opportunities longer using their mobile phones exclusively for
available to potential employees. The backbone voice communication but also for news, banking,
of the organisation comprises high-level engineers. internet and the like. Therefore, the company will
From there, frontline positions include solutions be targeting this market and making opportunities
consultants who take the specifications for product available for people to work within these specialist
design to the engineers, as well as IT, sales and fields.
LEARNING OBJECTIVES
The purpose of this chapter is to provide a comprehensive contemporary view of general
management principles and their application in modern organisations. The objective of studying this
chapter is to enable you to:
1. Understand the importance of managers and management in modern society.
. &eƂne management and eZplain the management process.
3. Identify and explain the different levels and areas of management in an organisation.
4. Explain the role distribution of managers.
5. Expound on the various skills needed by managers.
6. Explain how one can learn to manage successfully.
2.1 MANAGERS AND MANAGEMENT LEARNING OBJECTIVE 1
Managers experience more pressure today than any other time in Understand the importance of
history. Changes in the world that are impacting on managers include the managers and management in
growing globalisation of economies, technological innovations, trends modern society.
towards democratisation and increasing social imbalances. The nature of
management is to cope with these diverse and far-reaching challenges.
Managers have to keep pace with ever-advancing technology and find
ways to incorporate the internet and e-business into their strategies and
business models. They must strive to remain competitive in the face of
increasingly tough global competition, uncertain environments, cutbacks
in personnel and resources and massive economic, political and social
shifts. The diversity of the workforce creates other dynamics: How can
managers maintain a strong corporate culture while supporting diversity,
balancing work and family concerns, and coping with the conflicting
demands of all employees for a fair chance at power and responsibility?
CONTEMPORARY MANAGEMENT PRINCIPLES 29
,PART I: Introduction
The field of management is undergoing a revolution that demands
managers have to do more with less, to see change rather than stability
as the nature of things, and to create a vision and cultural values that
allow people to create a truly collaborative and enabling workplace.
Successful organisations don’t just happen; they are managed to be that
way. To be successful under such circumstances, every organisation
needs skilled managers. In our opening case, we saw that MTN proved
itself as the best South African employer in the large-sized employers’
category. MTN is a relatively young company. It opened its doors in
1994 and boasts 110 million subscribers across Africa and the Middle
East, 17 million of which reside in South Africa. During this short period
of time, management at MTN succeeded in fostering a highly enabling
environment and culture for their employees. It is a modern company,
conceived in a modern age. MTN’s management also succeeded in
integrating the company in both developed and developing countries.
To navigate the turbulence of today’s world, managers need to shift
their mindsets. Making a difference as a manager today and tomorrow
requires integrating tried-and-tested management skills with new
approaches that emphasise the individual, enhance flexibility, and involve
employees’ hearts and minds as well as their bodies. In our opening
case, we saw MTN using mentors from outside the company to coach
their executive managers, general managers and senior managers.
These mentors are willing to share their skills and expertise with MTN’s
management in various areas.
A company is only as good as its management. Managers have the
most direct influence on the performance of the company’s employees
and have the primary responsibility for inculcating the values, beliefs,
norms and values of top management for the long-term sustainability of
the organisation.
LEARNING OBJECTIVE 2 2.2 MANAGEMENT AND THE MANAGEMENT
&eƂne management and PROCESS
explain the management
MTN’s management proved their ability to steer the company
process.
successfully through many changes and challenges, especially the global
economic turbulence of the past few years. Taking into consideration
how broad the concept of management is, as it was exercised by MTN,
it is important to define the term ‘management’. For the purposes of
this book, management is defined as the process of working with and
through others to achieve organisational objectives as efficiently and
effectively as possible within a changing environment. This definition
of management essentially has six components which require closer
examination:
1. management is a process
2. working with and through others
3. achieve organisational goals and objectives
4. balance effectiveness and efficiency
5. make the most of limited and scarce resources
6. coping with a changing environment.
30 CONTEMPORARY MANAGEMENT PRINCIPLES
, CHAPTER 2 The management process
2.2.1 Management is a process
A process is a structured, interrelated set of activities designed to
produce a specific output. The management function in an organisation
can also be viewed as a process, as illustrated in Figure 2.1.
PLANNING
CONTROL ORGANISING
LEADING
Figure 2.1: The management process
Managers need certain inputs (or resources) to deliver certain outputs
(or performance). Managers need people (human resources); capital
(financial resources), physical resources, raw materials, components,
information and entrepreneurial skills to produce products and/or
services, create jobs, make a profit, achieve organisational goals and
contribute to the wealth of society. The transformation of inputs to
outputs requires management to perform certain activities or functions.
All managers, regardless of the type of organisation, the level at which
they are involved, their designated role(s) or specific skills, engage in
some manner in four fundamental, interrelated activities, also called the
management functions, in order to achieve some or other goal(s): management functions
r QMBOOJOH managers engage in four
r PSHBOJTJOH fundamental functions of
r MFBEJOH management, namely planning,
r DPOUSPMMJOH organising, leading and
controlling
The management functions
Planning (setting an organisation’s goals and finding the best way to planning
achieve them) is one of the management functions that determines setting an organisation’s goals
the organisation’s mission and goals. It involves identifying ways of and finding the best way to
reaching the goals and finding the resources needed for the task within achieve them
a complex environment. Hence the activities of the organisation cannot
be performed in a random fashion, but should follow a specific, logical,
scientific method or plan. Plans are mostly made by top management
and they vary from one to five or even ten years. These are called
‘strategic plans’. Tactical plans are made by functional managers (such as
financial, human resources, research and development, marketing and
CONTEMPORARY MANAGEMENT PRINCIPLES 31
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