KAMPALA INTERNATIONAL UNIVERSITY

DEPARTMENT OF PHYSICAL SCEINCES

ICH: 2103 INDUSTRIAL MANAGEMENT
LECTURE ONE
LECTURER: RICHARD TWINAMATSIKO
TEACHING PHILOSOPHY

My teaching philosophy is that students will be active participants in the learning

process, not passive recipients of the information. They should identify and solve
unstructured problems that require the use of multiple information source. Learning by
doing should be emphasized, working in groups should be encouraged

This subject of this course is of a theoretical and practical nature using case studies.

What is a case study?

A case study is a written or recorded, detailed analysis of some targeted management

issues for the purpose of noting success or failure used as a benchmark for education
research and or planning. A case study is an in-depth exploitation of one particular case
(situation or subject) For the purpose of gaining depth of understanding into the
business/management issues being investigated

Note, Case studies are compiled from published sources, and are intended to be used
as a basis for class discussion.

The course is covered in over 15 weeks of lectures. the weekly attendance pattern is
3hrs. students are expected to prepare for the relevant topic prior to attending lecture,,
listen and write notes during the lectures. Students are not allowed to engage in any
other matter during the lecture time.

COURSE Objectives

The subject is designed to provide students, who are doing industrial chemistry, with
professional, theoretical and practical knowledge that is needed by industrialists in
understanding and discharging their responsibilities as managers in a professional
environment. Industrial management is a field that bridges the gap between chemical
Engineering and management.

The main general objectives of this subject are for the students to:

 Know, understand management and appreciate its evolution.

 Understand functions of management, planning, organizing, staffing directing,
controlling and their relation to key issues of management.
 Understand production and project management and appreciate its relevance to
the industrial world.

REQUIRED TEXTBOOK

As and when necessary, students will be advised of any additional material that is
needed to complement the prescribed textbook. However, the textbooks are
recommended for further readings:

 Chandan J.S (2004), Management theory and Practice, Vikas Publishing House
PVT LTD
 Kreitner Robert, (1999), Management theory 7 th Ed. A.I.T.B.S. Publishers &
Distributors, India
 Gupta, (1991), Principles and Practice of Management 6 th Ed. Saraswati printing
press India.

Students are encouraged to use the e-resources that we have in the main library and to
use the internet to get. the relevant information about the topics.

Assessment

The purpose of the assessment is to evaluate your understanding and comprehension

of the subject material and the ability to apply the acquired knowledge to the type
problems, exercises and cases that you may face in your chosen professional
environment

EXAMINATIONS AND GRADING POLICY:

The semester grade will be mainly calculated based on three exams and class
assignment.

Performance assessment

Your course will be determined as follows;

Course work assignments(cases) 20%

Continuous assignments tests 20%
Final examination 60%
Total 100%

HOME WORK ASSIGNMENTS

The purpose and homework assignments is to ensure that you keep up to date with the
material and to help you identify any weaknesses before the major and final
examination.

There is a lot of work to be done in the course and it is up to each student whether they
choose to do these homework assignments. In the same way there is NO GRADED
credit given for homework nor will homework be turned in. however, students should
benefit from doing assignments in preparing for their exams. Prior experience clearly
indicates that it would be very difficult for the student to earn a good grade if he does
not do the majority of the homework assignments

FINAL EXAMINATION

The final examination is a comprehensive examination and will cover all topics covered
during the semester. The inclusion of a particular topic or issue in the semester tests
SHOULD NOT be interpreted as will not be examined again. The examination will
include materials in textbook, handout, lecture coverage, class discussions, home
assignments, and any other references referred to during the lecture or tutorial.
STUDENTS MUST UNDERSTAND THAT TO PASS THIS SUBJECT THEY MUST
PASS THE FINAL EXAMINATION.

SPECIFIC EXPECTATIONS
  University regulations relating to attendance will be strictly applied a student
should attend 70%.
 Students must attend class on time and disturbance will not be tolerated.
 Students should spend at least 6 hours in preparation outside the lecture room
 Read on the study topics ahead of the lecture.
 Participate in class and in group work and be responsible for group work or
project work.
 Learn what happens in missed class and contact your lecturer in case you have
to miss a lecture
 Dispose any cups, cans, bottles and residues brought into class
 Complete an in-depth research paper (4-6pg) that is relevant to the course, your
paper after approval will not be changed and the deadline is the 5th week.
 Place electronics in silent and refrain from texting, and interacting with the cell
phones, going out to interact with your phones is not acceptable.
 The dressing code is descent which is at the discretion of the Lecturer.

INTRODUCTION

Management is an art of designing, creating and maintaining an environment in which

individuals working together as a group can accomplish selected missions and
objectives. It includes planning, organizing, coordinating, directing, controlling and
supervising any project or activity with responsibility for results.

Managing is vital in all organized activities at all levels of an organization in any

enterprise; i.e. business as well as non-business organization. There is no basic
distinction between managers, i.e. executives, administrators, supervisors, etc. at all
levels and in all areas of enterprise. They all have the same basic task of creating within
the enterprise an environment that will facilitate the accomplishment of its objectives.
The overall aim of all managers is to generate surplus which is measured in terms of
time, money, materials and personal satisfaction. In other words, the manager is
charged with responsibility for establishing environment in which people can accomplish
the desired goals with the least amount of time, personal dissatisfaction and with
available resources

Generally, a manager must aim at highest possible productivity

Productivity in itself is defined as the ratio of output to input with in a time period with
due consideration to quality. If this ratio is high, then it implies high productivity. To
achieve high productivity, the manager has to be both effective and efficient in her
conduct.
Effectiveness: The achievement of the company objectives. For example, production
of 10,000 L of soda without time and resource factors.
Efficiency: The achievement of objectives with the least amount of resources in the
designing of an environment, for effective and efficient performances, the emphasis
should be put both internal and external environments.
Internal environment

The organization’s internal components and their relationships make up the internal
environment of an organization. The various el Departments, staff, materials, equipment
are all part of the internal environment. Internally, an organization can be viewed as a
resource conversion machine that takes inputs such as labor, money, materials and
equipment from external environment to convert them into useful products and services
and makes them available to customers as outputs. Some of the factors include; labour,
production processes, product quality, etc.

External environment

This consists of the outside institution forces that have an actual/potential interest or
impact the organization's ability to achieve its objectives. A detailed and proper
understanding of the external environment is very essential because it affects directly
the process and success of the enterprise. These factors include, customers, raw
materials, infrastructure, political factors, competitors, etc.

Categories of external environment component.

1. Economic factors. These factors are economic in nature and the organization has
no control over them. They include the following;
 Access to markets
 Availability of labour (both skilled and unskilled)
 Availability of Dower sources e.g. Umeme
 Availability of raw materials analysis.
 Availability of other competitors. i.e. companies the same industry that sell similar
products or services to customer
 Taxation policies e.g. the current mobile money taxes
2. Political factors: These are factors that are political in nature. For example, security,
political interferences, government policies, etc. The basic example of this is the
Southern Sudanese war that distorted many businesses in the recent years.
3. Technological factors: Technology is the knowledge, tools and techniques used to
transform in puts i.e. raw materials, information into out puts i.e. products and
services. The manager should be aware of the new technology be because
technological changes can benefit or threaten the business e.g. manual mixers to.
automated homogenizers/ mixers or determining color in a paint industry using
naked eyes to an automated color matching machine
4. Social cultural factors: These include; demographic characteristics and general
behaviors, attitudes and beliefs of people in a particular society.
5. Legal factors: These are factors that are legal in nature. For example, legislations,
regulations, court decisions that govern and regulate business behavior. Managers
must be aware of relevant laws and regulations e.g. alcohol should not be taken to
persons under 18 years
6. Ethical/religious factors: These are factors that ethical or religious in nature, for
example,' morals and norms that follow accepted principles of right and wrong

Various approaches / theories to management studies

The practice of management is an art because it involves know how (i.e.) doing things
in the light of realities of a situation. At the same time, it can be a science because it is
enhanced by use of organized knowledge with clear concepts, theory and other
accumulated knowledge developed from hypothesis, experimentation and analysis.
Some of the approaches include;

1. Empirical approach/theory:
This is approach involves studying and analyzing the manager's past experience i.e. her
success, failures and mistakes. Present and future managers will somehow come to
know how to handle effectively the similar situations there by perfecting the present and
guarding the future. However, this approach is not dependable because managerial
problems can change many times especially if technology changes

2. Situational or contingency approach:

This theory asserts that when managers make a decision, they must take into account
all aspects of the current situation and act on which aspects that are key two the
situation at hand.

3. The interpersonal behaviour approach:

This is based on psychological emphasis individual. His / her characteristic nature, his
or her motivation needs and reactions under the different environments.

4. The group behaviour approach:

This theory is related to the interpersonal behaviaur approach but it deals primarily with
the collective response or behaviour of the people in groups rather than behaviour of
individuals

5. Management by objectives (MBO) approach:

This is based on identifying objectives by top management and employees, agreeing to
these objectives and understanding what they are and how they will be achieved with in
an organization. It seeks to align employee's goals with the goals of an organization.
This ensures that everyone is clear about what they should be doing and how that i
beneficial to the entire organization.

Benefits of MBO

 Employees can be motivated because they participate in the goal setting

process.
  Performance can be improved because MBO concentrates on objectives.
 Unnecessary efforts will be minimized because objectives set clearly.
 MBO helps managers to exercise better control over employees.

6. Systems approach/ theory

This approach works at the organization as a system in which input in form resources
such as raw materials, money, technologies and people go through a process where
they are planned, organized motivated and controlled to meet the organizational goals.
Output would be products or services to a market. Out comes would be enhanced
quality of life or knowledge.

It should be noted that there are many other managerial approaches and a full
manager, therefore, should learn and weave together all the information from these
approaches as a spring board for blending principles with realities for effective
management.

Practice Questions

1. What is MBO? Does the subordinate involvement in the decision making process
help or hinder the effective operations?
2. Discuss the advantage and disadvantages of MBO. Can the disadvantages be
eliminated or reduced in impact?
3. Discuss the approach to management. Is it necessary to optimize the sub-systems
in order to optimize the whale system?
4. What are the characteristics of a system?
5. State the difference between internal and external factors of production
6. Explain the external factors that can affect the running of a chemical plant in Uganda
 KAMPALA INTERNATIONAL UNIVERSITY
DEPARTMENT OF PHYSICAL SCEINCES
ICH: 2103 INDUSTRIAL MANAGEMENT
LECTURE TWO
LECTURER: RICHARD TWINAMATSIKO
Functions of a manager

The basic functions of a manager include;

 Planning
 Organizing
 Staffing
 directing/leading
 Controlling

These managerial functions are different from non-managerial functions include

production, marketing, sales, finance, security, etc. These are called enterprise
functions.

PLANNING
This is a managerial that future and departmental goals and determining ways of
achieving them.

Planning therefore, is decision making because it involves selecting from among

established alternatives and it strongly implies managerial innovations. Planning
proceeds all other functions since they may be planned in advance if they are to be
efficient and effective. All managers have a responsibility of planning. They are at the
top or middle or bottom of the organization structure while the executives/managers
plan the general direction of the enterprise, managers at all levels must prepare their
plans so that the contribute to the overall aims of the organization. E.g. producing
10000L of soda/month. All departments should share their plans that will enable them
achieve company target.
The plan is said to be efficient if it achieves its purpose and objectives at reasonable
Cost with least individuals or group dissatisfaction in least possible time. The objectives
should be SMART, i.e. specific, measurable, achievable, realistic and time bound.

Steps in planning process

 Stating the mission

Mission or purpose on an enterprise is a basic function or task or motive which is
assigned to it by society. For a plan to be meaningful, the purpose or mission of the
enterprise must be stated first

 Choosing the objectives or goals

Objectives or goals are points towards which any activity is aimed. A planning manager
must identify verifiable and clear cut objectives and their nature should be clearly
stipulated. Objectives should be arranged in form of hierarchy ranging from
broad/overall objectives to individual objectives and must be communicated to every
contributing member for better understanding and coordination.

For example

 To provide high quality soap

 To generate profits for share holders
 To create employment
 To generate taxes to the government
 Identifying premises
Premises are assumptions or forecasts on which plans are based therefore it is
important for a manager to be involved in planning in order to access the future or
environment in which the plan is to be carried out. Forecasting includes the
consideration of economic, political and social factors. This helps the planning manager
to analyses and then anticipate potential problems in order to take preventive
measures.
 Surveying of resources
This involves establishing the amount and nature of the available resources in terms of
materials, money, facilities and personnel to facilitate effective planning in the light of
the actual situation.
 Determining and evaluating of alternatives
This step involves searching, examining and analyzing all the possible alternative
courses of action Through which a plan will be executed. Their and weak point must be
examined and then evaluated in the light of premises and goals

 Selecting a course of action

Having analysed evaluated all the, alternative courses, a decision is made on the most
viable and dependable choice.
 Establishing of budgets
A budget is designed an of expectation in numerical terms. After the decision is made
and the plan is set' it is then numberized by converting it into budgets which represent
the total um of income and expenses with resultant profile or surplus.
 Establishing of schedules
A schedule is a time table to be followed. A proper time table must be established when
planning for the execution and completion of the various components of the plan. This
helps to determine which objectives have been realized at a given time
 Establishing of standards
Standards are criteria of performance. Therefore, a planning manager must establish
standards by which performance is measured and as a means of correcting deviations
from the plan
 Establishing of policies, procedures and rules
A policy is a general direction with in which the workers move towards an objective.
Procedures and routes are precise means of making a step by step guide to action on
non-action that operates with in a policy frame work. This step helps to carry out plans
in an orderly and consistent manner. For example, working hour's policy. I.e working
hours are from 7 am to 6pm from Monday to Monday
Procedure; all workers must sign arrival books rule and there should no late coming.

Objective setting
A good objective must have the following attributes;

 Specific; an objective must be specific with a single key result. More than one result
should be accomplished, more than one objective should be written. Avoid general
objectives.
 Measured: an objective must be measured. Only objectives that affect behavior in a
measurable way can be optimally effective. Wherever possible state the objective as
a quantity. Avoid infinitive statements e.g. to know, to understand, to enjoy, to
believe, etc. where applicable, use action verb that are observable and better
communicate the intent of what to be attempted. This include to write, to apply, to
solve, to revise, to install, to measure, to identify, to investigate, to develop, etc.
 Attainable/achievable: an objective must be attainable and realistic with the
resources available at the stipulated time
 Result oriented: an objective should be central to the goals of the organization and
should be aligned with the mission of the organization
 Time limited: an objective should be accomplished in the time frame established and
should be traceable at any given time.

Problem solving and decision making

A decision is a solution chosen from among alternatives. Decision making is therefore, a

process of selecting alternative course of action that will give a desired goal or solve a
problem. A problem exists whenever there’s a difference between what actually
happens and what should have happened.

Problem solving is a process of taking action corrective in order to meet the set
objectives. The steps in the problem solving process include:

 Define the problem: in order to define a problem, the factors causing the
problem should be identified and understood. They maybe symptoms or
conditions that indicate the existing of a problem.
 Identify decision criterion: a decision will guide the decision making process.
Its important that a decision criterion is established earlier in the problem solving
process.
 Develop alternatives: all workable alternatives solutions for resolving the
problem should be identified and developed. Alternative solutions that are too
expensive too time consuming or too elaborative should be avoided where
possible. The strength and weaknesses of each alternative should be critically
analysed and alternatives that are not workable are eliminated
 Decide: the choice among the alternatives must be made based on the
alternative that has the highest score
 Implement the decision: one the solution is chosen it should be shared with
those whose work will be affected and those who are directly involved in its
implementation. This will ensure that it’s effectively implemented
 Evaluate the decision: there must be a follow up and verification of the
outcomes at the implemented decision to determine if desired results have been
achieved. In case the desired result would have been not accomplished the
process needs to be reversed from the beginning to determine if the desired
process has been used.
 KAMPALA INTERNATIONAL UNIVERSITY
DEPARTMENT OF PHYSICAL SCEINCES
ICH: 2103 INDUSTRIAL MANAGEMENT
LECTURE THERE
LECTURER: RICHARD TWINAMATSIKO
ORGANIZING
This is a managerial function that involves the designing and maintaining a system or
structure of roles each person is to play in their team operation and how these roles are
graded to each other.
Organizing therefore, involves;
 Determination of what activities are required to achieve goals
 Grouping of these activities into sections and departments
 Assigning of these groups of activities to managers
 Delegation of authority to carry them out
 Provision for horizontal and vertical coordination of activities of authorities and
communication.

This kind of arrangement implies division of labour, specialization that brings about
increased performance since the skill of the workers increases and little time is lost in
passing from one type of work to another. Specialization also encourages inventions
and use of special machinery that also adds to increased productivity.

Typical Organizational chart f a manufacturing firm

Formal and Informal Organization:

Formal organization is described as the intentional structure of roles in a formally

organized enterprise while informal organization is described as a network of personal
or social relations not established or required by the formal organization but arising
naturally as people associated with one another. A manager should study these
dynamic interpersonal relationships and avoid antagonizing them since they are
resourceful for managers to deal with their sub-ordinates.

Basic elements of organization

Span of control (span of management)

This refers to the maximum number of people a manager can effectively supervise and
control. The limit to the number of subordinates will depend largely upon certain factors
such as manager's amount of knowledge, experience and energy. Span of control will
intern determine the number of organizational levels. If the span is narrow, then the
number of organizational levels will be high conversely a wide span is associated with
few organizational levels.

Problems associated with organizational levels

 They are expensive to maintain especially as they increase in numbers since
additional managers imply additional expenses.
 They are associated with communication complication especially as they increase in
number. Omissions and misinterpretations are likely to occur as information passes
from top levels down to bottom levels,
 Numerous levels complicate planning and control due to inadequate coordination
and clarity of plans.

Advantages of organizations with narrow span

 It allows close supervision
 There's close control
 It allows fast communication between subordinates and then managers

Demerits of narrow span

 Superiors tend to get too involved in subordinates’ work
 It's associated with many levels of management and hence high costs due to many
levels.
 Excessive distance between lowest level and highest top level.

Merits of organizations with wide span

 Superiors are forced to delegate
 Clear policies must be made
 Subordinates must be carefully selected
 It leads to few organizational levels

Demerits
 Decision making is slow due to overloading of superiors
 There's a danger of a superior losing control
 It requires managers with exceptional qualities

Effective span

Effective span means reducing the time a superior spends with subordinates. The
following factors determine the effective span of control.
A superior's personal skills: The superior/manager must possess exceptional
personal skills such as commanding, loyalty respect and ability to work with the people.
Level of subordinates training: Better trained subordinates reduce the necessity of
the superior —subordinate relationship there by reducing the contact time between the
two.
Clarity of delegation of authority: if a manager clearly delegates authority to
undertake a well-defined task, a well-trained subordinate can get it done with a
minimum of superior’s time is required.
Use of objective standards: A superior should use objective standards such that any
deviation from plans can be detected early and easily and every necessary action taken
immediately. This enables a manager to avoid many times consuming contacts with
subordinates.
Rate of change: If the rate of change of plans, objectives and policies of an enterprise
is relatively IoW, effective span will eventually be attained since there's no need of
retraining the subordinates.
Communication technique: Managers or superiors must develop effective and
appropriate communication techniques to their subordinates.

DEPARTMENTATION

A department is a distinct area, division/ branch of an enterprise over which the

manager has authority for the performance of specified activities, Therefore,
departmentation is the grouping of activities and people into departments,

Basic patterns of departmentation

Departmentation by enterprise functions: This is the grouping of the activities on the

basis of the functions of the enterprise. It's common to many enterprises

Departmentation by territory or geography: This is the grouping of activities/people in a

given area/ territory. it’s common to enterprises that cooperate over wide geographical
areas. E.g. department in charge of central region. N.E, S.E etc.

Departmentation by process: This is the grouping of the activities on the basis of the
product or customer flow. Each process requires particular skills and offers a basis for
homogeneous categorization of work activities. E.g. a cloth manufacturing firm

Departmentation by numbers: In this case division is done on basis of numbers. E.g. In

the organization of the army, i.e. patrol (7), troop (14), platoon (28), Brigade, division,
etc.

Departmentation based on time: In this case activities and people are grouped on the
basis of time. E.g. hospitals and continuous processing industries where they use day
or night shifts. Some of the merits here;

 Services can be rendered for 24hrs a day

  It makes possible for processes that cannot be interrupted to go on in a
continuous cycle.
 Some people find it convenient to work at night

Demerits
 Supervision may be lacking during the night shift
 It's difficult for most people to switch from day to night shifts and vice versa
 Changing of shifts ma cause problems in coordination and communication.
 The payment of overtime rates can increase the cost of the product and services.
 KAMPALA INTERNATIONAL UNIVERSITY
DEPARTMENT OF PHYSICAL SCEINCES
ICH: 2103 INDUSTRIAL MANAGEMENT
LECTURE FOUR
LECTURER: RICHARD TWINAMATSIKO
Authority relationships

Authority is the power embedded in a position to be occupied by the person to exercise

discretion in making decisions affecting others. Power in general terms is the ability of
individuals or groups to induce/influence the beliefs/actions of other persons or groups.

Types of power

1. Referent Power: this power based on follower's identification with a leader. In this
case the leader is admired because of one or more personal traits and the follower
can be influenced because of his' admiration. E.g. Kabaka of Buganda.
2. Legitimate power: This power that is derived from a position in any organization
and this position is accepted by people under this organization as being legitimate.
3. Expert power: This is a power that arises from expertise or special skills/
knowledge. The possession of one or more of these gives the possessor the respect
and the compliance of the subordinates
4. Reward power: This is a power derived from the ability to offer rewards. A
subordinate perceives that compliance with the wishes of a superior, will lead to
positive rewards. E.g. if someone performs well, he/she may be promoted. This is a
reward.
5. Coarse power: This is power based upon fear. In this case the subordinate
perceives that failure to comply with the wishes of the superior, will lead to
punishment.

DECENTRALISATION OF POWER
Decentralization is the tendency to disperse/scatter/ delegate decision making authority
in an organized structure. The degree of decentralization is great if;
  The number of decisions made at each lower levels of an organization is high
 The importance of decisions made at lower levels is high
 The number of enterprise functions in which decisions are made at lower levels is
big.
 If there's less checking by superiors of the decisions made at lower levels.

Unity of command

This is when every individual/subordinate reports to a single superior and gets orders
from up directly.

Merits

 It has an advantage of eliminating the problem of conflicting instructions

 Less costly since few or less superiors need to be paid
 Easy decision making

Chain of command

This is the flow of orders from the top down to the lower levels following an established
pattern of rank and file.

Delegation of authority

Authority is said to be delegated when a superior gives a subordinate discretion or right

to make decision. The process of delegating involves 4 major steps;

 Determination of results expected from a position

 Assignment of tasks to a position
 Delegation of authority to accomplish these tasks
 Putting people in those positions with a responsibly of accomplishing the required
task

Weak delegation may occur as a result of;

 Managers/supervisors who are un willing to allow subordinates to use their

authority
 Unclear/partial and inconsistent delegations with results expected
  Untrained, unfit/weak subordinates who go to their bosses from decisions
 Subordinates who will not accept responsibility.

Weak delegation can be overcome by;

 Defining assignments clearly and delegating the authority in the light of expected
results
 Selecting the qualified person in the light of the job to be done
 Maintaining open lines of communication
 Establishing proper controls as a means of correcting deviations from the task

In addition, the delegating manager must possess exceptional, personal attitudes

towards delegation. These include;

 Receptiveness: She/he should be ready to receive and welcome diverse ideas

from subordinates
 Willingness to allow subordinates make their own decisions
 Willingness to accept calmly mistakes done by subordinates
 Willingness to trust subordinates.

Factors determining the degree of decentralization of authority

Nature of task and objective: some tasks are very important such that a mistake done
in decision making may be too costly. In such a situation, the top management is
unwilling to decentralize authority to less experienced people in decision making.
Desire for uniformity of policy: If the enterprise policy is desired to be uniform, then
centralization of authority is favored over decentralization since the former leads to unit
of direction. E.g. Coca-Cola international.
Size of organization: a large organization is normally associated to more
organizational levels and departments, therefore, more decisions to be made. In such a
situation there's a higher tendency to decentralize power to lower levels and
departments.
Management philosophy: The character and philosophy of the top executive have an
important influence on the extent to which authority is decentralized. Some top
managers are too conservative tolerating low interference with the authority they
jealously guard.
Availability of managers: A shortage of qualified managers would limit
decentralization of authority since lower levels will be managed by personnel of little /no
qualification and experience and hence cannot be trusted with decision making.
Line and staff concepts
Line functions are those that have direct responsibility for accomplishing the objectives
of an enterprise. On the other hand, staff functions are those that help the line functions
to work more effectively in accomplishing the objectives. E.g. line function (quality
control personnel).

Forms of authority
Line authority: This is the relationship which superior exercises direct supervision over
a subordinate. In this case authority flows in a direct chain of command from the top of
the enterprise to the bottom
Staff authority: This is advisory in nature in which staff personnel investigate research
and give advice to line managers. This type of authority is based on expertise and staff
personnel aid line departments in making decisions but do not have the authority to
make final decisions.
Functional authority: This is the right which is delegated to an individual/department to
control specified processes, practices, policies/other matters relating to activities under
taken by personnel in other departments. This is done due to the number of reasons
that include; Lack of special skills, Knowledge, ability to supervise process and danger
of diverse interpretation of policies.

Merits of line authority

 It maintains simplicity
 Makes clear division of authority
 Encourages speedy actions

Demerits
 It neglects specialization in planning
 It overworks key people
  It depends on retention of a' few key people

Merits of staff authority

 Enables specialization to give expert advise
 Relieves the line executives of detailed analysis
 It affords young specialist a means of training

Demerits of staff authority

 It confuses organization if functions are not clear
 Creates a danger to undermine line authority
 Lack of responsibility for a failed mission
 Staff may lack background information that might lead to give advice that is not
practical.

Merits Functional authority

 It relieves line executives of routine specialized decisions
 Provides frame work for applying expert knowledge
 It eliminates the danger of diverse interpretations of policies
 It eliminates the danger of lack of ability to supervise a process

Demerits
 It makes relationship more complex
 Creates managerial problems as a result of multiple authority
 KAMPALA INTERNATIONAL UNIVERSITY
DEPARTMENT OF PHYSICAL SCEINCES
ICH: 2103 INDUSTRIAL MANAGEMENT
LECTURE FIVE
LECTURER: RICHARD TWINAMATSIKO

STAFFING

This is a managerial function that of filling positions in the organizational structure. It

includes, identifying workforce requirement, inventorying the people available,
recruitment, section (choosing the best candidate to fill the position), placement (putting
the right pers8Q in a right place), promotion, appraisal (measuring worker's
performance), compensation and training of the needed people. Staffing is also referred
to as Human resource management.

Factors affecting the kind of managers required by an enterprise

 Size of the organization
 Complexity of the organizational structure
 Plans for future of expansion
 Available resources
 Qualification need for individual positions

Availability of managerial resources within an enterprise can be determined-by use of a

manager inventory chart
Manager inventory chart
This is an organizational chart of an enterprise with all managerial positions indicated
and keyed as to promotability of each incumbent.
 Typical manager inventory chart for an engineering firm

KEY

XXXX Promote now

XXX Promote in one year
XX Potential for further promotion
X Satisfactory but not promotable
Y Terminate or Dismiss
Upper figure Age
Lower figure years in position

Merits of this chart/ Inventory Chart

 It gives an overview of the staffing situation of an organization
 Managers who are ready for promotion can be easily identified
 It shows the future internal supply of managers. i.e. future managers can be
groomed
 Un-satisfactory performances can be easily identified and a need for replacement is
indicated
 If there's a shortage of managers, recruitment and training plans can be indicated

 It facilitates the transfer of managers to other departments

 It helps to identify and present the hoarding of promotable people by their immediate
supervisors
 it helps managers to counsel and advice their subordinates on their weak points
creating room for improvement.

Demerits
 It doesn't indicate the position to which. a person is to be promoted v/
 The chart's data are not sufficient to make a fair assessment of all the capabilities
of individuals
 It takes time to prepare the chart and keep it updated
 There's no sharing of information of the chart with the subordinates
 Some departments may hesitate to make their charts available to other
departments for fear of losing competent subordinates

The data about the need and availability of managerial with in an enterprise will give
rise to 4 demand and supply situations.

1. When the supply of managers is high, and there's an increased demand for them,
then the focus will be based on selection, placement and promotion.
2. When the supply of managers is low, and there's increased demand for them this will
call for internal promotions external recruitment and special emphasis should be
placed on training and development.
3. A high supply of managers and a low demand, may force an enterprise to resort to
demotion, early retirement or take advantage of the situation to reduce on the
excessive managerial personnel.
4. A low supply of manager\and a low demand of managers indicate a state of
stagnation with in an enterprise. In this case the, the enterprise should start training
and developing managers if change in demand is expected in the future.

Key requirements for a managerial position

 The scope of the job should be appropriate to provide opportunity for growth.
 The Position should involve a full time challenging job
 A job design should reflect the required managerial skills
 The job design should be well designed with appropriate job structure in terms of
content functions and relationships.

Skills and personal qualities for good managers

 Technical skills: This is the knowledge of activities involving methods, processes and
procedures. E.g. expert power
 Human skills: This is the ability to work with people. i.e. interpersonal skills,
communication skills
 Conceptual skills: This is the ability to be innovative/better way of making
things/application of ideas.
 Analytical and problem solving skills: Should be able to analyze the problem.

Personal qualities include;

 Desire to manage
 Good communication skills through written, oral reporting, discussions speech,
etc.
 Should have high integrity and honesty
 A clean past performance as a manage

After the organizational positions are. identified and the related skills and qualifications
clearly stated, managers are obtained through, selection, placement and promotion.
Selection is choosing from among the candidates the one that best meets the position
requirement.
Promotion is a change within the organization to a higher position with greater
responsibilities and requiring more advanced skills
Recruitment involves attracting candidates to fill the position in the organization
structure.
Orientation process: This is the process by which new managers are integrated into
the system, the process involves introducing new employees to the enterprise, its
functions, tasks and the people.
Performance appraisal: This is a process of estimating, evaluating and jugging;
managerial performance in achieving the objectives for which the manager is
responsible. The criteria used to measure and judge managerial performance include;
 To relate the manager’s ability to set goals intelligently
 To plan programs that will accomplish those goals
 To succeed in achieving, them
Other criteria may be based on personal qualities such as;
 Ability to work with others
 Leadership qualities and competence to solve problems

Appraisal is important because of the following reasons

 Allocate resources
 It provides feedback to the workers
 It maintains fair relationships and communication ties.
 Helps in rewarding employees. Good performers are always rewarded. The rewards
may include; promotions, increased pay, paid holidays, special prizes responsibilities
and requiring more advanced skills, (car or house etc.). This is intended to motivate
employees for yet better performance

RETIREMENT
This is an arrangement by which the employees earn the right not to work after a certain
age. Special provisions must be put in place by the enterprise for this arrangement. This
may include;
 Provision of retirement benefits or payments and pension to the employee
 Arrangements for immediate replacement to ensure a smooth continuation of
services,

LEADING/DIRECTING FUNCTIONS
Leading is a managerial function/ process that involves influencing and persuading
people so that they will strive willingly and enthusiastically towards the achievement of
the organizational goals. Since leading implies dealing with people directly, a
manager/leader should have a proper understanding of human nature, human
motivation, leadership styles and communication techniques if he is to be an ineffective
and successful leader.
 Managers/leaders must study and-establish the social and economic needs of
their subordinates or servants
 They should understand the behavioral patterns of their subordinates so that they
apply the best motivational technique.
  They should also establish the individuals/personal objectives of their
subordinates and make sure that these objectives are in harmony with those of
the entire enterprise
 Lead people with respect and dignity with respecting their positions in an
organization.
 Take a personal interest in your subordinates. E.g. understand their problems
and take care of them
 Provide the worker with information about his job and his company
 Recognize the status of the individuals
 Listen to what the worker has to say, managers should understand the worker's
pint of view
 Give the worker a sense of participation. Make him or her to take part in decision
making
 A manager must be innovative and creative. Creativity is the ability to develop
new ideas while innovation is the use of these ideas.

MOTIVATION
This is a process of stimulating/ inducing subordinates by satisfying as much as
possible their drives, wishes interests etc., so that they act willingly in a desired manner
that will lead to the achievement of the organizational goals.

A manager therefore, having established the social and economic needs of then
subordinates must design a favorable environment that will satisfy those needs. This will
in turn motivate employees to work effectively and willingly towards the achievement of
organizational goals. Some of the motivational factors include;
 A challenging job which allows a feeling of achievement
 Possibility of growth in the job
 A feeling of responsibility
 Possibility promotion. Being in the same position for a long period of time is
demotivating.
 Desire for recognitions
 Desire for social status
  A good working relationship between the subordinates land their superior
ensuring good terms between subordinates and the manager
 Tolerable company policies and work rules
 Favorable physical working conditions e.g. provision of protective gear s/ Job
security
 Reasonable salary
 Less likelihood of risk against personal life
 Reasonable compensation in case of accident that may cause dis ability and
even death of workers.

The theory of motivation by Maslow's hierarchy of needs theory

Maslow postulated that man is a perpetually a wanting animal. His needs are never fully
satisfied. As one need is satisfied, another need takes place. This process continues
from birth to death. According to Maslow, motivation stems from unsatisfied need (i.e. In
order to motivate someone, you need to satisfy their need). He hypothesized that with in
every human being; there exists a hierarchy of five needs as follows;
 Physiological needs: E.g. food, shelter, clothing, sleep, etc.
 Safety (security) needs: These include clinical safety, physical safety or
protection against murder, fire accidents etc., and economic security against
unemployment safety, old age, sickness, disability etc. Ensure your worker's job
security and life insurance.
 Social needs: Man is a social animal and he needs social needs. E.g. affection, a
sense of belonging, acceptance and friendship. A manager can organize social
outings, dinners etc. to motivate his staff.
 Esteem needs: internal factors such as self-respect, autonomy and being
independent achievement as well as external factors such as status, recognition
and attention.
 Self-actualization needs: This is a drive to become what one is capable of
coming. It includes growth, achieving one's potential and self-fulfillment. It's
directly towards searching for the meaning and purpose of life. One may seek to
achieve excellence in a chosen field. The specific form this need takes varies
from person to person. One person may choose to become an ideal parent and
another one may have a desire to excel in his or her career.
 KAMPALA INTERNATIONAL UNIVERSITY
DEPARTMENT OF PHYSICAL SCEINCES
ICH: 2103 INDUSTRIAL MANAGEMENT
LECTURE SIX
LECTURER: RICHARD TWINAMATSIKO
CONTROLLING

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Meaning of Controlling

Controlling is one of the important functions of a manager. In order to seek planed

results from the subordinates