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CHAPTER – 3
BASIC ADMINISTRATIVE AND MANAGERIAL PRINCIPLES-I
Planning is a basic managerial function. It helps in determining the
course of action to be followed for achieving various organisational objectives.
The important areas like Management by Objectives, Policy and Strategy,
Decision Making etc. are included in the wide area of planning. Here the role of
all these concepts in academic administration is studied upon.
PLANNING
3.1.1 Introduction
Planning has assumed great importance in all types of organisations-
business or non- business, private or public sector, small or large, in developed
countries or developing countries. In fact the difference between successful and
unsuccessful organisations is because of the nature of planning undertaken by
them. The organisation which thinks much ahead about what it can do in
future, is likely to succeed as compared to one which fails to do so.
3.1.2 Fundamentals of Planning
Planning as a process involves the determination of future course of
action, that is, why an action, what action, how to take an action and when to
take an action. These why, what, how, and when are related with different
aspects of planning process. Why of action reveals that action has some
objectives or the end result which an organisation wants to achieve, what of
action specifies the activities to be undertaken and how and when generates
various policies, programmes, procedures and other related elements. Thus, all
these elements speak about futurity of action. “Whenever a number of
individuals join together and decide to achieve a common goal, planning
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becomes necessary. Planning has always been a prerequisite to effective
management”1
3.1. 3 Meaning of Planning
Planning in its broadest sense means systematic preparation for action.
Every action, unless it is the result of sudden impulse, is preceded by some
preparation, conscious or unconscious. Planning, therefore, is inherent in all
human activity, individual or collective. In a great enterprise involving the co-
operative effort of many, the role of conscious planning is more explicit and
pronounced than in the work of a single individual or small groups.
3.1.4 What is Planning
The origin of the word “planning” can be traced to the Latin word
‘planum’ meaning a flat surface. Its usage became common sometime in the 17th
century and was referred to principally for drawing a form on a flat surface such
as a map or blue print. Today “planning” encompasses a broad scope of the
human activity.2 By its very nature it is the antithesis of the “status quo”. It is
a process of examination and re-examination of continual consideration of the
future, of constant searching for more effective methods of accomplishment and
improved results. This is in sharp contrast with the concept of passive stability
— of moving only when necessary or when all signs point to a foregone
conclusion.3
“It is a process of drawing up schemes for accomplishing pre-determined
goals and has been in existence ever since one- man business in one form or the
other.”4 In planning, a good part of the business is the lie-in between
programmes and operations, procedures and people, planned goals and the
proven abilities and desires of the human organisations. Unless these lie-ins
are evaluated carefully, thoughtfully and realistically, all the numbers, such as
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ratios, projections, criteria, alternative programmes, simulations, and schedules
will be of little value. They will be spinach and nothing more.5
3.1.5 Definition
Planning means looking ahead, planning is to peep deep into the future.
Planning is estimating, forecasting and prognosticating. Planning enables us to
know and study the future course of events well in advance. Thus, a provision
can be made for the future eventualities. Planning is an intellectual process
whereby the management foresees and visualizes and determines what is to be
done, how, when and where it will be done and who has to do it. Thus planning
enables every organisation to draw a clear picture of the future.6
According to George R. Terry, “Planning is the selecting and relating of
facts and making and using of assumptions regarding the future in the
visualisation and formulations of proposed activities believed necessary to
achieve desired results.” 7
As G.K. Kanchan says “Planning is a process that involves making and
evaluating each of a set of inter related decisions before action is required in a
situation in which it is believed that, unless action is taken, a desired future
state canot be achieved and that by taking appropriate action the likelihood of a
favourable outcome can be increased.” 8
In short, planning is the conscious process of selecting and developing
the best course of action to accomplish a defined objective. It is a
comprehensive term and involves successive steps.
1 Determination of the objective- This may involve collection of available
data and an enquiry into all aspects of the problem, various alternatives
are examined and then a final decision is taken.
2 Consideration of possible courses of action to achieve the objective- Once
the objective has been determined, the next problem is the finding out of
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the best means to achieve it. This implies the posing of possible
alternative methods and examining each one of these.
3 Selections of the best course of action – This implies evaluations of the
results of investigations and tests of the various alternatives and finally
choosing the last of them.9
3.1.6 Ideal Plan
According to L.F. Urwick an ideal plan should possess the following
essential features:
(1) The plan must be based on well-defined objectives.
(2) The plan must be simple and clear to understand.
(3) The plan must provide for proper analysis, classifications of actions.
(4) The plan must be flexible (so as to incorporate the changes necessary for
making the plan more effective).
(5) The plan must be balanced (i.e., it must cover all the segments and
should allocate the resources in such a way that harmony is maintained
throughout the organisation without giving undue preference to certain
departments).
The plan must make best use of the available resources.10
3.1.7 Administrative Planning
Administrative planning is a phase of management and involves drawing
up a programme of operations in advance and the provision of the requisite
organisations, personnel, material, and procedures for carrying it out. In its
comprehensive sense administrative planning embraces problems of
organisations, budgeting, personnel, procedures- in fact all the phases of the
‘POSDCORB’ activites. Organisation is nothing but a plan of sorting relationship
among the personnel and the budget is only another name for the financial
plan.
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There are some, who divide governmental planning into administrative
(policy and programme planning) and management (operational planning).
Such terminological controversies need not worry us here. As shown above,
planning regarded as an important task of management. Administrative
planning comprehends all the activities of government and can be divided
roughly into policy, programme and operational planning. Thus division is
based on the level, the main objectives and that subject matter with which each
type deals.11
3.1.8 Planning in Academic Administration
Planning is done in every walk of life. It is an age-old phenomenon and
done by every one knowingly or unknowingly. The planning function of
management decides the future course of activities for a given period. It is the
basis of management to avoid crises. Planning is an intellectual process
whereby the management foresees and visualizes and determines what is to be
done, how, when and where it will be done and who has to do it. Thus planning
enables every undertaking to draw a clear picture of the future.
The term ‘Academic’ relates to learning, particularly higher level of
learning. The institutions of higher learning are mainly universities. These are
the centres of Higher Education. Academic Administration means
administration of Higher Educational Institutions. It is the duty of higher
educational institutions to satisfy the educational needs of the society and
deliver competent persons to the society. It also produces trained leaders for
the society. So the administration of higher educational institutions are very
important.
A higher educational institution or a University has two wings. Academic
and Administrative. It is the duty of the academic wing to teach the students.
The administrative wing manages or administers the teaching process ie. to
administer the various affairs of the students and teachers.
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In a university, the administrative wing possesses almost an equal
importance and status with the academic wing. Admission and registration of
students, conducting the examinations, issuing marklists and certificates,
timely delivery of study materials etc. are the duty of administrative wing. They
do a number of measures for the students and teachers and for the overall
growth of the institution.
So planning in Academic Administration has two faces. Planning in the
academic field and planning in administrative set up. Both these types of
planning are very important. Here academic administration is taken in its
narrower sense. It means the implementation or administration of the decisions
taken by the higher authorities of a university.
In Planning in Academic administration the various plans taken by the
university for the timely issue of applications, admission, examination,
valuation, issuing of marklists and certificates, and other measures taken by
the higher authorities of a university and undertaken by it’s administrative
officers are studied.
3.1.9 Importance of Planning in Academic Administration
Planning has assumed great importance in all type of organisations-
business or non- business, private or public sectors, small or large. Without
clear planning a university administration cannot become efficient. The lack of
clear planning about its administration leads a higher educational institution to
delay issuing applications, admission, examinations, valuation, issuing of mark
sheets and certificates and all other student support services. It causes the
inefficiency of the institution and gradually it fails in successfully fulfilling the
aspirations of the society. In particularly planning contributes in the following
way.
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(1) To effect uncertainty and change- There is a continuous change in the
environment and the organisations have to work coping with accelerate
changes. In order to cope up with the requirements of such changes,
organisations must look ahead for its future courses of action, which are
basically provided by planning process.
(2) To focus attention on objectives- Planning focuses on organisational
objectives and direction of action for achieving these objectives.
(3) To help in coordination- Though all managerial functions lead to the
coordination in the organisation, real beginning is made at the level of
planning. Well-considered overall plans unify interdepartmental activities
and consequently restrict the area of freedom in the development of
purely departmental plans. Thus, various departments work in
accordance with the overall plan, and harmony is achieved.
(4) To help in control – Control involves the measurement of
accomplishment of events against plans and the corrections of deviations
to assure the achievement of objectives set by the plans. Thus, controls
exercised in the context of planning, act as standards against which
actual results are to be compared or set up through planning.
(5) To increase organizational effectiveness – Planning ensures
organisational effectiveness in several ways. The concept of effectiveness
is that the organisation is able to achieve its objectives within the given
resources. Planning states the objectives of the organisations in the
context of given resources. Therefore, each resource of the organistions
has a specific use at a particular time. Thus planning along with control
answer whether resources are put in action in a way in which these have
been specified. If this is done, organisations will achieve effectiveness.
MANAGEMENT BY OBJECTIVES
3.2.1 Introduction
“Management by objectives is both a philosophy and a technique of
management. It represents a rational and systematic approach to management
wherein measurable goals are set up in consultation with subordinate managers
and the contributions of each individual is judged in terms of such goals.”12
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3.2.2 Objectives
Organisations, being deliberate and purposive creations, are created for
the fulfillment of some objectives. The ends for which they strive for are
variously known as ‘purpose’, ‘mission’, ‘objective’ or ‘goal’. Formulations and
definitions of objectives of an organisation are the basic requirements for
effective management. If they result from careful analysis and planning, they
would serve as guidelines for managerial actions.
3.2.3 Concept and Features of Objective
In a simple way, objectives may be defined as the end results, which an
organisation tries to achieve. According to Mc Forland,”Objectives are the goals,
aims, or purposes that organisations wish to achieve over varying periods of
time”13
3.2.4 Features of Objectives
(1) Each organisation, as group of individuals, has some objectives. In fact,
organisations or groups are created basically for certain objectives.
Members in the organisation or group try to achieve these objectives.
(2) Objectives may be broad, as they may not be specifically mentioned.
They may be set either for long term or for a short term.
(3) Objectives may be clearly defined. It provides direction for managerial
action
(4) Objectives have hierarchy. At the top level, it may be broad
organisational purpose which can be broken into specific objectives at
the departmental level. From departmental objectives, units of the
department may derive their own objectives. This is possible because
organisation is created by combining people into sections, departments,
divisions etc. All of them try to achieve organisational objectives and at
each level, a unit may contribute to the fulfillment of the task assigned to
it. Thus a hierarchy of objectives is created.
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(5) Organisational objectives have social sanction, that is, they are created
within the social norms. Since organisations are social units, their
objectives must conform to the general needs of the society.
3.2. 5 Management by Objectives (MBO)
Management by objectives (MBO) is at once a method of performance
appraisal and a technique of organisational planning and control. It is a
technique whereby organisational objectives are segmented into departmental
targets and then into objectives for individual employees. Superiors and
subordinates meet and jointly agree subordinates job specifications and goals,
preferably in quantitative terms. MBO supposedly motivates employees through
involving them in the determination of objectives, and should help them develop
their individual careers. Subordinates who achieve their targets will experience
a sense of satisfaction in their achievements.
3.2.6 Definition
According to Koonts “MBO is a comprehensive managerial system that
integrates many key managerial activities in a systematic manner, consciously
directed towards the effective and efficient achievement of organisational
objectives.”14
According to Chakravarty “MBO is a result-centred, non-specialist,
operational managerial process for the effective utilisation of various resources
of the organisations by integrating the individuals with the organisation and
organisation with the environment.”15
According to George Odiorne, “MBO is a process whereby the superior
and the subordinate managers of an enterprise jointly identifies its common
goals, define each individual’s major areas of reponsibility in terms of the
results expected to him, and use these measures as guides for operating the
unit and assessing the contribution of each of its members.”16
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3.2.7 Benefits of MBO
(1) Better managing- MBO helps in better managing the organisational
resources and activities. Resources and activities are put in such a way
that they result in better performance.
(2) Clarity in organisational Action – MBO tends to provide the key result
areas (KRAs) where organisational efforts are needed. Since
organisational objectives are defined very easily, they help in relating the
organisation with its environment .
(3) Personnel satisfaction- MBO provides greater opportunity for personnel
satisfaction. This is possible because of the two closely related
phenomena: participation in objective setting and rational performance
appraisal.
(4) Basis for organisational change – MBO stimulates organisational change
and provides a framework and guidelines for planned change, enabling
the top management to initiate, plan, direct and control the direction and
speed of change.
3.2.8 Process of MBO
MBO is a system for achieving organisational objectives, enhancement of
employee commitment and translation of basic concepts into management
practice. The MBO process is characterized by the emphasis on the rigorous
analysis, the clarity and balance of objectives, and participation of the managers
with accountability for result
(1) Setting of organisational purpose and objectives- The first basic step in
MBO is the definition of organisational purpose and objectives.
Questions, such as “Why does the organisation exist”, ‘what business are
we in’, and “what should be our business” provide guidelines for the
statement of purpose. Usually the objective setting starts at the top level
of the organisation and moves downward to the lowest managerial levels.
(2) Key result areas- Organisational objectives and planning premises
together provide the basis for the identification of key result areas
(KRAs). It may be emphasised that KRAs are derived from the
expectations of the various stake- holders and indicate the priorities for
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organisational performance. KRAs also indicate the present state of an
organisational health and the top management perspective for the future.
(3) Setting subordinates objectives- The organisational objectives are
achieved through individuals. Therefore, each individual manager must
know in advance what he is expected to achieve. Every manager in the
managerial hierarchy is both superior and subordinate except the person
at the top level and the lowest level. Therefore, there is a series of
superior and subordinate relationship.
Chart III-1
3.2.9 Process of MBO
Source: Principles and practice of management, L.M. Prasad.
Organisational purpose
and objectives Planning premises
Key result area
Superior’s objectives
Subordinate`s statement
of his objectives
Superior`s
recommendation for
subordinates objectives
Matching
resources
Subordinate`s
agreed objectives
Subordinates objectives
Performance review and appraisal
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(1) Matching resources with objectives – when objectives are sorted
carefully, they also indicate the resource requirement aspect of objective
setting because it is the proper application of the resources, which
ensures objective achievement.
(2) Appraisal – appraisal aspect of MBO tries to measure whether the
subordinate is achieving his objective or not. If not, what are the
problems and how these problems can be overcome. Appraisal is
undertaken as an on-going process with a view to find out deficiency in
the working and also to remove it promptly.
(3) Recycling- Though appraisal is the last aspect of MBO process, it is used
as an input for reaching objectives and other actions. Objectives are
neither set at the top and communicated to the bottom nor are they set
at the bottom and go up. Objective setting is a joint process through
interaction between superior and subordinate.
3.2.10 Problems of MBO
MBO systems require effective management information systems in order
to assess the effects of subordinates’ activities and the system should be
sufficiently flexible to enable rapid revision of individual targets as
environmental circumstance change. There are of course, problems associated
with MBO which include the following:
(1) The danger of meaningless attempts to quantify activities that are
innately unquantifiable. How, for example, could the objectives of a
manager whose role is purely advisory, be expressed in numerical terms?
(2) Possible encouragement of myopic emphasis on immediate quantifiable
goals to the detriment of nebulous but nonetheless important longer
term objectives.
(3) Difficulties created because subordinates are not given the information,
resources or authority necessary for the completion of tasks allocated to
them.
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(4) The enormous amount of time consumed by regular consultations
between higher and lower executives. A dictatorial system, whereby
superiors simply impose targets on subordinates without consultation,
might be more efficient. Moreover, firms operating in highly uncertain
and rapidly changing market environments may need to alter their
objectives. So frequently the MBO procedures become impractical.
(5) Tendencies of senior managers to pay more attention to subordinates’
personal qualities than to the work done by them.
(6) Possible concentration of effort on the achievement of individual rather
than departmental targets.17
POLICY AND STRATEGY
3.3.1 Introduction
Every organisation is involved in a complicated pattern of decisions
ranging from broad decisions about objectives of the organisations to specific
decisions about day to day operations. Some of these decisions are of long term
orientation while others are made within the context of earlier decisions.
Decisions with long-term orientations provide guidelines for subsequent
decisions. Two such parts of planning- policy and strategy – are important in
providing guidelines for organisational decisions.
3.3. 2 Policy
A policy is a broad statement formulated to provide guidance in decision
making at lower levels of management. It defines the area or limits within
which decisions can be made.
3.3. 3 Concept and Features of Policy
The term policy is derived from the Greek word ‘politeia’ relating to policy,
that is ‘citizen’ and Latin word ‘politis’ meaning ‘polished’, that is to say ‘clear’.
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According to New Websters Dictionary, Policy means the art or manner of
governing a nation, the line of conduct which rulers of a nation adopt on a
particular question especially with regard to foreign countries, the principle on
which any measure or course of action is based. While these descriptions of
policy relate to any field, policy in the organisational context is defined as
“management’s expressed or implied intent to govern action in the achievement
of company’s aims.”18
It suggests that it governs actions of people in the organisations but does
not say how the action is governed. Therefore, an operational definition of
policy may be as follows:
A policy is a statement or general understanding which provides
guidelines in decision making to members of an organisations in respect to any
course of action.
Policies may apply to the entire organisation or they may relate to only
one department. Generally, policy decisions are considered to be the more
important decisions of an organisation: yet many important decisions have no
policy implications.19
3. 3.4 Significance of Policy
The use of policies is vital in the task of planning a course of action.
Policies supply the standard guides who help managers to plan, to act in line
with legal requirements and to realize the derived objectives. Policies help an
executive to keep his activities within the prescribed framework of action. As a
matter of fact, policies give meaning to the objectives. The objectives of
organizations are usually couched in general terms. Policies give concrete form
to these goals.
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3.3.5 Meaning and Definitions
The term is often used rather loosely: It is confused with rule, custom and
decision. While it is true that a rule is a guide in as much as it prescribes the
do’s and don’ts, but rules, unlike policies are specific and rigid. A custom has
been defined as ‘a habitual course of action’. It is the way in which work is
actually done. A custom just grows while a policy may be the result of
deliberate action. However, customs and policies need not always coincide. A
decision is usually taken within the framework of policy, that is, policy may
involve a series of decisions. Similarly, a distinction should be made between
policy and method or procedure. Policy is concerned with basic issues while
method deals with the way of accomplishing a policy. In the words of Terry “A
policy is verbal, written or implied basic guide to action that is adopted and
favoured by a manager.”20
According to Koontz and O’Doennll, “policies are general statements of
understandings which guide or channel thinking in decision-making of
subordinates.”21 Policy should be distinguished from the goal or the objective on
the one hand, and the operative steps, on the other.
3.3.6 Policy and (Academic) Administration
It was Woodrow Wilson, who, in his essay, ‘The study of Administrations”
published in 1887, attempted a rigid distinction between policy and
administration. To him the policy-making was a political function while
administration was concerned only with the enforcement of policies. In his own
words, “The field of administration is a field of business. It is removed from the
hurry and strife of politics.”22
3.3.7 Formulation of Policy
Policy, it should be remembered, is not static and does not stand still. It
is dynamic and is prone to constant changes. Policy is formulated in the
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context of changing goals, shifting environments and varying situations.
Seckles – Hudson rightly regard’s even policy decision as a moment in a
process. In other words, policy formulation is a continuous obligation and the
reformulation of policy in the light of experience is as important as its
formulation in the first instance. Secondly, polices are not made in a vacuum,
that is to say, the policy maker is not free to formulate policies arbitrarily, he is
bound to take into consideration a number of factors.
It should be noted that in a given organisation there need not be only one
point from where policies emanate; in practice the process is widespread all
through the organisations. The whole process is indeed, two fold, namely, a
working down from the rules at the top, and a working up from the persons
affected. According to Gladden four different levels in policy-making may be
distinguished—(1) Political or general policy framed by the parliament: 2)
executive policy framed by the cabinet (3) administrative policy, that is, the form
in which the administrator carry out the will of the government; and (4)
technical policy, that is, the day to day policy adopted by officials in the working
out of the administrative policy.23
3.3.8 Strategy
The concept of strategy in business has been borrowed from military
science where it implies the art of the military general to fight the enemy. A
strategy is a broad plan of action for the deployment of resources in pursuit of
defined objectives.
3.3.9 Concept and Features of Strategy
The concept of strategy is even more confusing in management literature
as compared to policy. The word strategy has entered in the field of
management more recently. It has been derived from the Greek word ‘Strategos’
which means general. Therefore, the word strategy means the out of general.
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Frequently used in military science, it means the art of so moving or disposing
the instruments of warfare as to improve upon the enemy the place, time and
conditions for fighting by oneself. Strategy ends or yields tactics when actual
contact with enemy is made. However, in organisations, it is used in a different
form. For example, Earned, et. al. have defined strategy as follows:
Chandler is more explicit on the subject, when he defines strategy as
follows: “Strategy is the determination of basic long-term goals and objectives of
an enterprise, and the adaptation of a course of action and the allocation of
resources necessary for carrying out these goals.”24
Stragety is the determination of organisational objectives in the light of
environmental variables and determination of the course of action and
commitment of organisational resources to achieve these objectives.
DECISION MAKING
3.4.1 Introduction
Decisions are required to be made in every walk of life, so also decisions
are to be made in business regarding various aspects of business. Therefore,
Peter Drucker, an eminent management consultant, has aptly pointed out that
“Whatever a manager does, he does through making decisions”. That is to
emphasise that the manager has to make decisions, every now and then to
facilitate the smooth and efficient working of the organisations. The plans
framed are put into action through decision making. It is instrumental in
implementing the plans.25
3.4.2 Decision
To decide means to come to a conclusion or resolution. It is a choice
whereby a person comes to a conclusion about a situation. It represents a
course of behaviour or action about what must or must not be done. Decision-
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making may be defined as the selection of one course of action from two or more
alternative courses of action. It is a choice making activity and the choice
determines our action or inaction.26
3.4.3 Significance of Decision Making
Decision-making is a common, everyday phenomenon. Every man
has to make decisions whether on personal or public matters and on significant
or insignificant fields. Indeed, no organisation can be run without taking
decisions and if it is to be run on sound lines, decisions have to be, by and
large, correct and reached in time. Similarly, decision making is the essence of
all management public or private. The power to make decisions has been
correctly identified with the power to manage. No one can ever aspire to be a
successful executive, if he is either incapable of taking decisions or is prone to
making wrong decisions. A greater leader, somehow, develops an uncanny
development which usually results in correct decisions.
However, decision- making, though highly important, is equally difficult.
In the words of March, “An executive existing in the complex environment of the
business organisation has a three-stage decision problem- (1) to which of his
many problems should he direct his attention (2) How much time, effort and
expense should he invest in resolving uncertainty about that problem; and (3)
what solution to the problem should he use.”27
The simplest way to view decision-making is to see a decision as an act of
choice by which an individual or organisation selects one position or action from
several alternatives. Thus a decision represents an action or series of actions
chosen from a number of possible alternatives. Sometimes the chosen
behaviour is not reflected in specific actions, and actions are often not overt or
directly observable. A decision not to act at all is also possible. However most
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frequently, the decision results in some tangible action, such as rules, policies,
orders, or other concrete events.
3.4.4 Meaning and Definition of Decision Making
The product of the process is a decision that can be defined as a course of
action consciously chosen from available alternatives for the purpose of
achieving a desired result. Three ideas are important in this definition. First, a
decision involves a chance, if there is but one possible course of action, no
decision is required. Second, a decision involves a mental processes at the
conscious level. The logical aspects are important, yet, emotional, non-rational,
and subconscious factors do influence the process. Third, a decision is
purposive; it is made to facilitate the attainment of some objective.28
3.4.5 Meaning
Decision-making is the process of determining the most suitable course of
action from among the alternatives. Decision making means arriving and
deriving conclusions from a given set of facts regarding various aspects of the
enterprise. Decision is a commitment and therefore, the manager while taking
decisions has to exercise utmost diligence, vigilance and intelligence. A decision
is a deliberate action. The question of decision making arises mainly because of
the existence of alternative solutions or courses of action. If there is only one
course of action that itself becomes the decision. But, in practice a number of
alternatives are available and therefore, decision making assumes prime place
in management.29
3.4.6 Meaning and Nature
In short, to decide means to come to a conclusion. “A decision is usually
made within the guidelines established by policy. A policy is relatively extensive,
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affecting many problems, and is used again and again. In contrast, a decision
applies to a particular problem and has a non-continuous type of usage.”30
Shull et al have defined decision making as follows.“Decision making is a
conscious and human process, involving both individual and social phenomena
based upon factual and value premises, which concludes with a choice of one
behavioural activity from among one or more alternatives with the intention of
moving toward some desired state of affairs.”31
Decision has been rightly described as “a moment in the process of
policy formation”. However, the policy itself is the result of a decision. An
important point to remember about a decision is that it is only a means to an
end and never an end in itself. Again decision making is not a static process.
Decisions are constantly being made and remade in response to changing
requirements. There is nothing sacrosanct about a decision and nothing
permanent about it.
3.4.7 Decision Making Process
When a manager makes a decision, it is in effect the organisation’s
response to a problem. As such, decision should be thought of as means rather
than ends. Every decision is the outcome of a dynamic process, which is
influenced by multiple forces. This process should not be interpreted to mean
that decision making is a fixed procedure. A process is basically a dynamic
concept rather than static. Events and relationships are dynamic, continuous
and flexible and must be considered as a whole in which many forces interact: a
force affecting others and being affected by others.
The decision making process may be described in five steps:
(1) A good decision depends on the makers being consciously aware of the
factors that set the stage for the decision. Post actions and decisions
provide the structure for current decisions. The environment of the
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maker determines many factors that must be accepted as being out of
the construct of the maker.
(2) A good decision is dependent upon the recognition of the right problem.
Too often, a decision maker is so intent on jumping to the right to that he
does not ensures fail to look first for the right question. Even if, current
operations appear to be proceeding nicely, a good manager will not relax
and assume that there are no problems. One of the key duties of a
manager is to search for problems.
(3) Search for and analysis of available alternatives and their probable
consequences is the step most subject to logical and systematic
treatment. Various disciplines offer many ideas of practical help to the
manager, such as mathematical models, the theory of probability, and
the economists’ concept of incremental revenue and cost.
(4) Even in the best-designed framework of alternative consequences, the
crucial step remains-the selection of the solution. At this stage, the
ranking of preference is important. The executive who must make
decisions quickly may wish for the best solution but may settle for only a
satisfactory one. Often the theoretically best decision may be only
slightly better than a number of satisfactory ones.
(5) Finally, a decision must be accepted by the organisation. The entire
process is directed towards securing action. If others are affected, the
decision must be communicated to them; they must be motivated to
implement the decision; furthermore control provides information for
future decisions.
Decision-making is a process and decision is the product of such process.
Decision-making is the selection of a course of action from among alternatives.
To achieve a specific objective is to solve a specific problem: 1. Selection implies
discriminating. 2. Alternative implies a real opportunity for choice from two or
more things, courses etc. 3. Objective implies something tangible to be achieved.
4. Decision is also a solution to a problem.32
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3.4.8 Types of Decision
Basic Decisions- Unique - one time decisions, involving long term
commitments, large investments, costly mistakes.
Routine Decisions- Repetitive, involving little thought, tending to have
only minor effect on the organisations. These decisions are made with the help
of standing plans, eg. Procedures and policies.
Tactical Decisions- These are routine, unimportant and contain few
alternatives. Situation is given, requirements are evident. The only problem is
to find most economical adaptation of known resources. Decision shall achieve
the desired end with minimum effort and disturbance.
Strategic Decisions- Decisions upon basic objectives and basic policies.
They involve either finding out what the situation is, or changing it, either
finding out what the resources are or should be.
Programmed decisions- Those which are routine, repetitive, have set up
procedures, deal with low risk, more easily delegated, subject to quantitative
assessment, programmed into computers.
Unprogrammed decisions- New unique non-repetitive, high risk, many
courses of action possible, no easy quantitative assessment, involve greater
expenditure of resources, cannot be programmed into computer.
Personal decisions- Decisions made by a managers as an individual
cannot be delegated.33
ORGANIZING
Organisation is an essential part of human life. It is the establishment of
relationship among various persons and positions in the university
administration. It also involves the assignment of responsibility and delegation
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of requisite authority for carrying out the assigned task efficiently and
systematically. If the work is not allocated properly, there may arise conflict,
confusion and friction among people of academic administration.34
It would be better to make a detailed study about the problems in the
areas of Theories of Organisation, Organisation Structure, Departmentation,
Span of Management, Authority and Responsibility, Delegation of Authority and
Centralisation and Decentralisation in the university administrative system.
THEORIES OF ORGANISATION
3.5.1 Introduction
Organisations have been in existence from times immemorial. They are
as old as civilisation. However, organisation theory is of comparatively recent
origin. Several theories have been developed at different times to meet the
problems of increasing size and complexity of organisations.
Organising means providing the business with all the requirements for its
smooth functioning. This involves the assembling of all the resources viz., Men,
Money, Machines, Materials and Managerial Personnel. Organisation is
concerned with the creation of relationship amongst the employees for carrying
out the task as individuals and group as a whole with utmost efficiency.
3.5.2 Meaning and Definition
The term organisation is used in at least three different meanings, namely
(1) the act of designing the administrative structure, (2) both designing and
building the structure, i.e., planning is the scheme of the structure and
appointing suitable personnel to it and (3) the resulting administrative structure
itself.
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In the words of Gaus, “Organisation is the relation of efforts and
capacities of individuals and groups engaged in a common task in such a way
as to secure the desired objective with the least friction and the most
satisfaction for whom the task is done and those engaged in the enterprise.”35
Gaus highlights the importance of the human element in an organisation.
Gladden defines it as “the pattern of relationships between persons in an
enterprise, so contrived as to fulfil the enterprise’s functions.”36
“Organisation is the arrangement of personnel for facilitating the
accomplishment of some agreed purpose through allocation of functions and
responsibilities.”37
Let us define an organisation as a structured process in which
individuals interact for achieving stated objectives. This definition is simple but
quite comprehensive. It recognises both the concepts of organisation: a
structure and a process. At the same time, it does stress the twin aspects of
interaction and inter-relationship of people to achieve some purpose.38
3.5.3 Theories of Organisation
There is nothing more practical then a good theory properly applied and
those who refuse to go beyond fact rarely get as far as fact. Hence, management
theory in academic administration enables one to classify, establish
relationships, clarify and suggest solutions to many confusing problems in the
field. Some such important theories in academic administration are:
3.5.4 Theory of Organisational Behaviour
According to this theory, observed behaviour in an organisation is a
function of the interaction between the organisational (nomothetic) and
individual (ideographic) dimensions. Therefore, to understand the behaviour of
a focal occupant of a position (say, administrator) it is necessary to understand
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both organisational and individual dimensions where it emphasise on the
institutional roles and expectations. An ideal administrator is the one whose
behaviour is both organisational and personal. In other words, an
administrator endeavours to achieve the goals of an organisation and the
personal needs of an individual, known as transactional. Though not entirely,
this theory has some application congruence in academic administration,
specially in the organisational set up and the functional management of
different areas of educational enterprise.39
3.5.5 Theory of Human Resources Management
McGregor has propounded two theories: Theory X and Theory Y. These
theories aim at providing a framework for the management of people to achieve
their organisational goals. According to Theory X, average human being has
inherent dislike for work and will avoid it if he can. Therefore, people at work
must be coerced, controlled, directed and even threatened with punishment
towards the organisation goals and objectives. Whereas Theory Y, argues that
average person accept and seek responsibility and will exercise self-direction
and self-control towards organisational goals, if he is committed and provided
with sufficient security. The administrator in academic administration can
utilise the essential ideas in planning their policy and making decisions by
synthesising the vital elements of these theories after discovering the nature and
potentials of these theories after discovering the nature and potentials of
educational organisation for its efficient management.40
3.5.6 Theory of System Analysis
The concept of system analysis can be traced back to Aristotalian
Philosophy who suggested that ‘the whole is greater than the sum of its parts’.
Gordon and Parson held the view that it is not enough to understand the
relationship among the parts. The System Theory has logico-mathematical
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bearing and the formulation and derivation of those general principles are
applicable to all systems. The system may be defined as a series of interrelated
and interdependent parts such that the interaction any part (sub-system) would
affect the whole system.
The system theory is much more relevant to academic administration
because the educational system or an educational institution with its students,
teachers and other staff in it interact, inter-involve and interdependent with
others in the system and the wider system. Educational system, like all other
social systems have identical properties of other systems. Although, the
educational system like other human organisations, have some special
characteristics, yet such organisations, as a special class of open system has
some unique properties of its own, but they share other properties in common
with all open systems.
Some such common characteristics of educational system with open
system are: (1) Input-output of resources, (2) Cycle of events, (3) Negative
entropy, (4) Diversification and Common End.41
3.5.7 Integrated Contingency Theory of Management
While classical theory of administration concentrates on the welfare and
structure of organisation, the neoclassical theory stresses on the welfare of
individuals in the organisation. In recent years, modern management theories
tend to assume integrated contingency perspective on education. The modern
theorists argue that the appropriateness of any administrative theory depends
on the degree to which it perceives the integration of the individual with the
organisation in a specific situation and environment. Therefore, on one style of
administration is always appropriate. Different things motivate different people
differently and hence various administrative structures, principles and
techniques are appropriate at various times and situations. The emphasis
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therefore should be on the diagnosis than on the prescription. The diagnostic
approach demands the consideration of the environment and situation of the
organisation in addition to the variables contingent upon them. Although the
structural arrangement of organisation is probably the most effective and
simplest way of studying and solving the administrative problems, it must be
used in conjunction with examination of issues such as authority, tasks,
functions and duties, methods of communication and information flow,
structure of rewards and the expectation of its members.
The main concern of Integrated Contingency Theory is the
unpredictability of the environmental, influence and administrative situations.
This is truer on the case of education with its ever growing complexity and the
nature of changing administrative environment. These complexities generate
pressures, conflicts and contingencies. Each one of this must be examined and
treated in a systematic way. This further implies that (a) administrative plans
and policies must be flexible, they must consider both long and short range
aspect, (b) decisions must be open and participatory than fixed and mechanical,
(c) leadership must be open, diffused and broad-based with each member
sharing their roles, and (d) communication must be all types and all embracing.
Although, the relevance of modern theories of management have not been
critically studied in relation to academic administration, the stage is yet to be
set for the modernisation of educational administration through research,
experimentation and innovativeness since the clutches of bureaucracy and
classical thinking still dominates in this field.42
3.5.8 Importance of Organisation in Academic Administration
It is no exaggeration to say that we are living in the age of the
organisation “About the first thing we do to identify people today is to find out
the principal organisation of which they are members.”43 Organisations are
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important because a large number of people spend a big chunk of their time in
them. Following are the importance of organisation in academic administration.
(1) It is the foundation of management
(2) It smoothens administration in the university administration.
(3) It facilitates the proper grouping of activities to reap the benefits of
specialisation.
(4) It facilitates delegation of authority for carrying out activities efficiently in
the administrative system.
(5) It provides scope for expansion and diversification of the activities of the
university administration.
(6) It accommodates technological developments.
(7) It facilitates human use of human beings.
(8) It develops creative thinking.
(9) It is instrumental in achieving coordination in the university
administration.
ORGANISATION STRUCTURE
3.6.1 Introduction
Organisation structure is a basic framework within which the managers’
decision making take place. Structure basically deals with relationships. It is an
important scientific concept. In the management of university administration, it
is required to understand how organisations are structured and how these
structures are created and maintained. The problems in the area of the
structure of university administration may seriously affect the overall efficiency
of it.
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3.6.2 Meaning and Definition
In a simple term, structure is the pattern in which various parts or
components are interrelated or interconnected. This prescribes the
relationships among various activities and positions. Since various persons
hold these positions, the structure is the relationship among people in the
organisations. It is very difficult to study the organisation structure seperately
from its functioning. For example, Katz and Khan observes as follows in this
context: “A social system is a structure of events or happenings rather than of
physiological parts and it, therefore, has no structure apart from its
functioning.”44
3.6.3 Features of Good Organisation Structure
The contingency approach of organisational design suggests that there is
no one best way of designing an organisation structure. The good structure is
one which meets the demands of various contextual variables, namely
environment, technology, people, and size. However certain features of
organisation structure can meet all these demands. These features can be
obtained in an organisation structure of the university administration if
properly designed. If the following criteria are taken into account while
designing an organisation structure, it is likely to meet the demands of various
factors.
1. Simplicity- An organisation Structure should be basically simple.
Provisions of various net works are essential but it should not lead to
confusion and ambiguity. Every person in the organisation should be
clear about to whom he has to consult in a particular matter.
2. Flexibility- An organisation structure should be flexible enough so that
changes can be incorporated whenever needs arise. The structure is
designed not only for a time period but for a distant future also
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3. Clear Line of Authority- The concept of clear line of authority implies
that one should be very clear about what one is expected to achieve or
contribute and what relationships should be maintained by one officially.
4. Application of Ultimate Responsibility- it suggests that although a
superior manager assigns some of the work to his subordinates, he is
ultimately responsible for performance of total work. Thus he is
responsible for his own work as well as for the work performed by his
subordinates.
5. Proper Delegation of Authority- The concept of ultimate responsibility
can work only when there is proper delegation of authority at various
levels of the organisation. Delegation of authority refers to authorisation
of a manager to make certain decisions.
6. Minimum possible Managerial Levels- As for as possible, there should be
minimum managerial levels. Greater the number of managerial levels,
longer is the line of communications in the chain of command and the
communication has to travel along the line creating problems of delay
and distortion.
7. Principles of Unity of direction and Command- Unless absolutely
essential, principles of unity of direction and unity of command should
be followed. Unity of command suggests that one person should receive
orders and instructions from one superior only. Unity of command again
provides clarity in role while multiple command provides opportunity to
avoid responsibility.
8. Proper Emphasis on Staff- Line functions should be separated from staff
functions and adequate emphasis should be placed on important staff
activities. A line activity is that which serves the organisational
objectives directly on the other hand, contributions of staff activities are
indirect, that is, they help in carrying out the line activities so as to
achieve organisational objectives.
9. Provision for Top Management – The organisation structure should
clearly specify how the top management groups will participate in the
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management of the organisation, how they exercise control over the
functioning of the organisation, and so on.45
3.6.4 Role of Organisation Structure in Academic Administration
Organisation structure is capable of serving many functions in academic
administration, at the same time but cannot serve all functions equally well over
unlimited time. Structure created for one purpose may not serve other
purposes well. Therefore, it is important for managers to determine the
outcomes desired from organisation structure, and to match the organisation
with changing needs with multiple needs or roles of organisation structure, a
balance will have to be struck and priorities established in the operation of the
organisational mechanism. In general, there can be the following roles for an
organisation structure: (1) facilitating management actions, (2) encouraging
efficiency, (3) communications, (4) Optimum use of organisational resources, (5)
stimulating creativity, and (6) job satisfaction.
1. Facilitating Management Action- when large number of people work
together in the university administration, some sort of formal structuring
is required to place them according to the needs of the administrative
system. All of them perform various functions like finance, examination,
academic and administrative, which are interdependent and interrelated.
As such, there must be a plan for systematic completion of the work of
each specialised job so that total activities accomplish common
objectives.
2. Encouraging Efficiency- organisation structure is the framework within
which an organisation functions. In this functioning, efficiency is the
major criterion. Therefore, members of the university administration try
to maximise the output of services to the society resulting from a given
input of resources, or at least make a respectable showing in that
direction.
3. Communications- organisation structure provides the pathways for
communication among members of the university administration as well
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as between the university administration and its environment. In fact,
when is said that organisation structure establishes relationships, what
is meant that it creates reporting relationships, i.e, who will
communicate with whom.
4. Optimum Use of Organisational Resources- organisation structure tries
to make optimum use of resources of the university administration by
ensuring their allocation to points where these are needed. Organisation
structure gives higher place to activities which are more important to the
achievement of the objectives of the university administration.
5. Stimulating Creativity- a sound organisation structure based on
specialisation stimulates creative thinking of the employees of the
university administration by providing well-defined area of work with
provision of development of new and improved ways of working.
Organisation Structure tries to put people at places where they are
required.
6. Job Satisfaction – organisation structure provides for each person in the
university administration a place of status which confers a certain
standing among his fellows. This works as motivating factor for them.
The above roles of organisation structure are important. All these roles
can be performed by the structure in the university administration only when it
is properly designed. Further, organisation structure should be viewed as a
means to work specific ends. As such, it can be used as a tool, not an end.
DEPARTMENTATION
3.7.1 Introduction
The first real task in designing an organisation structure is the
identification of activities and to group them properly. The process of grouping
the activities is commonly known as departmentation. In academic
administration there arises four different functions, these are examination,
academic, administrative and finance. Under each head there are a number of
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subdivisions. So the problems in the area of departmentation seriously affect
the efficiency of university administration.
3.7.2 Meaning and Definition
Grouping of activities is an essential step in designing an organisation
structure. Grouping of activities into departments, divisions or other
homogeneous units is known as departmentation. Departmentation or
departmentalisation is the process of grouping tasks into jobs, the combining of
jobs into effective work groups and the combining of groups into identifiable
segments or departments. It involves horizontal differentiation of activities in an
organisation. Thus, the departmentation is the process of dividing the work of
organisation into departments or other manageable units.
Louis Allen: “ Divisionalisation is a means of dividing the large and
monolithic functional organisation into smaller flexible administrative units.”46
Koontz and O’ Donnell:” A department is a distinct area, division or
branch of an enterprise over which a manager has authorised for the
performance of specified activities.”47
Departmentation is the process of classifying and grouping all the
activities of an organisation into different units and sub units. The purpose is
to facilitate the carrying out of the activities efficiently for achieving overall
results. The management of the organisation is made more effective by
departmentation. It would have been a very difficult and complicated task to
manage a large organisation without divisionalisation.
3.7.3 Need and Importance of Departmentation in Academic
Administration
The basic need for departmentation in academic administration arises
because of specialisation of work and the limitation on the number of
subordinates that can be directly controlled by a superior in the university
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administration. Therefore, if there were no departmentation, there would be
serious limitation on the size of the university administration. Grouping of
activities and consequently of personnel into departments makes it possible to
expand the university administrative system to any extent. However, when
departments are created to overcome this basic limitation, they serve a number
of other functions leading towards the organisational efficiency of the university
administration. The major advantages of the departmentation in academic
administration is as following:
1. Advantages of Specialisation. The basic advantage of the specialisation
lies in terms of efficiency with which the work is performed because a
person focuses his attention on a narrow aspect of the work and he gets
mastery over that aspect.
2. Fixation of Responsibility. Departmentation helps in fixing the
responsibility and consequently accountability for the results.
Responsibility can be discharged properly when it is clear, precise, and
define.
3. Development of Managers. Development is possible because of two
factors. First, the managers focus their attention on some specific
problems which provide them effective on-the–job training. Second,
managerial need for further training can be identified easily because the
managers’ role is prescribed and training can provide them opportunity
to work better in their area of specialisation in academic administration.
4. Facility in Appraisal. Managerial performance can be measured when
the area of activities can be specified and standards in respect of these
can be fixed. Departmentation provides helps in both these areas.
Performance appraisal will be more objective when departments have
been created in the university administrative system.
5. Feeling of Autonomy. Departmentation provides motivation by developing
feeling of autonomy to the extent possible. Normally departments are
created in the university administrative system with certain degree of
autonomy and freedom.
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A department is the fundamental organisation unit of administration on
which rests the obligation of carrying on operations of the university
administration. This unit is the highest one in the administrative hierarchy,
immediately below the Chief Executive and responsible and subordinate to the
latter. “The departmental system is the natural outgrowth of the need for the
division of labour in administrations, and becomes acute when the functions of
an enterprise multiply over and over as in the case of a modern government and
especially the federal government.”48
We have to divide the work to be performed in the university
administrative system. First we have to group tasks arranging the work into
manageable units for individuals. Then we have to form sections. A section is a
group of workers under one Section Officer. Then sections are grouped to form
larger administrative units such as departments and divisions.
Departmentation is the process of analysing, dividing and arranging work or
activities into manageable portions for individuals, sections, and departments.
Thus, departmentation is the organisation-wide division of work. Logical
grouping of activities gives us (a) individual jobs, (b) sections and (c)
departments.
3.7.4 Key Factors in Departmentation of Academic Administration
(1) It should facilitate control over the various activities of the university
administration
(2) It should ensure proper coordination among various departments
(3) It should take into considerationn the benefits of specialisation in
university administration
(4) It should not result in excess cost
(5) It should give due heed to human aspects
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In order to make the university administrative system more and more
effective, the organisational structure must be capable of bringing about
changes in the organisation taking place from time to time. Such a process of
changing the organisational structure of the university administrative system is
known as reorganization.
SPAN OF MANAGEMENT OR CONTROL
3.8.1 Introduction
The grouping of activities to create various departments presents another
problem, that is, how many individuals should be placed under one superior.
This problem is related to the horizontal dimension of the organisation structure
of the university administration. In management literature, span of
management, span of control, or span of supervision are used to denote the
same concept of number of subordinates, that should be put under one
superior. It has an important role in a human centred organisation like the
university administration. So we should study about the problems of span of
management in it.
Span of management refers to the number of subordinates who can be
managed effectively by a superior. The number of subordinates that report to a
superior has two important implications. First, it is influential in determining
the complexity of individual managers’ jobs. Second, the span of management
determines the shape, or configuration of the organisation; the fewer the
number of people reporting to a superior, the larger the number of managers
required. However, Soujanen has suggested that span of management is a
traditional concept and is not valid because the coordination and control can be
achieved through formal and informal group activity. The replacement of the
old system of individual control by control through management team has
changed the whole system of communication and contact in the organisation,
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which has affected attention, paid to the way executive controls in the command
sense.49
3.8.2 Meaning of Span of Management
Span of management refers to the number of subordinates that report
directly to a single manager or superior. If the number of subordinates
reporting directly to a manager is very large, he may not be able to exercise
effective supervision and control. On the other hand, if the number is too small,
full use of the manager’s abilities may not be made and the subordinates may
not get adequate autonomy of work. There is a limit on the number of
subordinates that a manager can effectively supervise. This limit arises due to
limited time, capacity and attention available to a manager.
Graicunas, a French management consultant, has suggested the fixation
of number of subordinates based on mathematical calculations.50 Graicunas
has identified three types of superior subordinate relationships: direct single
relationships, direct group relationships and cross relationships.
(i) Direct Single Relationships. Direct single relationships arise from the
direct individual contacts of the superior with his subordinates.
(ii) Direct Group Relationships. Direct group relationships arise between the
superior and his subordinates in all possible combinations. Thus, the
superior may consult his subordinates with one or more providing
assistance.
(iii) Cross Relationships. Cross relationships arise because of mutual
interaction of subordinates working under the common superior.
3.8.3 Factors Affecting Span of Management
The basic idea behind limiting the span of management is to enable a
manager to manage his subordinates effectively. Therefore, such factors are
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quite important in determining the suitable span of management. Following are
such factors:
1. Capacity of Superior - Each manager has different ability and capacity
in respect of such factors as leadership, communication, decision-
making, control, etc. affecting management of subordinates.
2. Capacity of Subordinates- Capacity of subordinates also affects the
degree of span of management. Efficient and trained subordinates may
discharge their functions more efficiently without much help from their
superior.
3. Nature of Work- Nature of work affects the degree of span of management
because different types of work require different patterns of management
and hence time from superior.
4. Degree of Decentralisation- Degree of centralisation or decentralisation
affects span of management by affecting the degree of involvement of the
superior in decision-making process.
5. Degree of Planning- Higher is the degree of plans, particularly standing
plans clearly providing rules, procedures, methods, etc. in doing the
work, higher would be the degree of span of management.
6. Communication Techniques- Communication with staff assistant and
through the use of modern electronic communication devices will save a
lot of time and the span can be increased.
7. Use of Staff Assistance- Use of staff assistance in reducing the workload
of managers enables them to manage a higher number of subordinates.
8. Supervision for Others- It is not very uncommon that a subordinate
receives supervision from several other personnel besides his direct
superior. In such a case, the workload of direct superior is reduced and
he can supervise an increased number of subordinates.
The analysis of various factors affecting span of management suggests
that there cannot be any fixed number of subordinates under one superior.
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Koontz has analysed the role of various factors in determining the span of
management and has calculated the optimum span based on these factors.51
3.8.4 Importance of Span of Management in Academic Administration
How many subordinates can a manager supervise or control directly in
the university administration? What should be the span or range of control or
span of supervision is a controversial problem. The limitations of a human being
influencing his span of control are equally applicable to the university
administration.
(1) He has limited time at his disposal for his activities. Time is a
valuable but a scarce resource. (2) He has limited available energy and must
depend upon others to supplement his energy when his workload increases
considerably. (3) He can give attention and concentrate only on a limited
number of subjects or problems at a time.
These three limitations on the capacity of human beings (1) Support the
concept of span of control and (2) also indicate that the optimum span of control
varies among individuals and depends upon a number of situational factors,
such as presence of good communication devices, degree of decentralisation,
control practices, type of management, nature of work to be supervised and so
on. It is obvious that a single executive cannot supervise effectively too many
subordinates. Similarly, if the number of subordinates is very small, the
executive will be idle and his service underutilised.
AUTHORITY AND RESPONSIBILITY
3.9.1 Introduction
Formal organising in academic administration is complete with
determining necessary organisational units, providing suitable physical factors
and assigning competent personnel to each unit. The organisational units
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must also be given proper authority so that they can take certain actions.
Managers at various levels in the university administration, in reality, do not
perform the actual jobs but they get things done by others (operatives). This
shows that managers have some right by which they can get things done. This
right is generally known as authority which every manger must have, to perform
his functions effectively in the university administration. The problems in the
areas of authority and responsibility have an important role in the inefficiency of
the university administration. Authority and responsibility are the two sides of
the same coin. If the employees are not responsible, its base is that they don’t
have any authority.
3.9.2 Meaning and Definition
Authority is defined in various ways because of the various sources
through which one acquires authority in the organisation. For example,
authority may arise because of official position of a person, his personal
competence, or the nature of his subordinate. In management, authority may
be defined as the right to guide and direct the actions of others and to secure
from them responses which are appropriate to the attainment of the goals of the
organisation. Authorities are right to decide and to direct others to perform
certain duties in achieving organisational goals. According to Barnard,
“Authority is the character of communication (order) in a formal organisation by
virtue of which it is accepted by a contributor to, or member of the organisation
as generating the action he contributes, that is, as governing or determining
what he does or is not to do so far as the organisation is concerned.”52
Authority may be defined as the legitimate right to give orders and get these
orders obeyed. Thus, the exercise of authority involves superior-subordinate
relationship. For example, Simon has defined authority as follows:
“Authority may be defined as the power to make decisions which guide
the actions of another. It is a relationships between two individuals, one
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superior and the other subordinate. The superior frames and transmits
decisions with the expectation that these will be accepted by the subordinate.
The susbordinate executes such decisions and his conduct is determined
them.”53 On the basis of this definition of authority, its following features can be
identified:
1. The authority given to a position is legal and legitimate.
2. The authority enjoyed by a position is not limited.
3. Authority is a relationship between two individuals-one superior and the
other suboridinate.
4. Authority is used to achieve organisational goals.
5. Authority is the key to the managerial job.
6. Authority gives right of decision making because a manager can give
orders only when he decides what his subordinates should or should not
do.
7. Authority in itself is an objective thing but its existence is always
subjective.
8. Authority can be delegated.
3.9.3 Sources of Authority in Academic Administration
Some management experts believe that authority originates at the top
and flows downwards. Others suggest that authority originates at the bottom
and flows upwards as a kind of consent of the subordinates. As a result, there
are three different theories to explain the source of authority.
3.9.4 Formal Authority Theory.
According to this theory, authority originates at the top of the university
administration and flows downward through the process of delegation. The
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Senate and the Syndicate delegate authority to the Vice Chancellor who in turn
delegates it to departmental heads, and so on. Every manager in the university
administration has only that much authority which has been delegated to him
by his superior. He derives his authority from his formal position in the
university administration. Authority is concentrated at the top. It travels down
the scalar chain and each person enjoys formal authority by virtue of his
position in the scalar chain. Therefore, the authority is known as formal
authority.
3.9.5 Acceptance Theories
Acceptance theories view authority as being present when a directive is
legitimised by virtue of its acceptance from below. Authority exists when
subordinates are willing to be directed. For the first time, Bernard challenged
the traditional concept of flow of authority from top to bottom. According to
him: “Authority is the character of a communication (order) in a formal
organisation by virtue of which it is accepted by a contributer to or a member of
the organisation as governing… or determining what he does or is not to do so
far as the organisation is concerned.”54
An essential ingredient of Barnad’s concept of source of authority is that
the person subject to authority voluntarily accepts it. If the acceptance is
lacking among sufficient number of the employees affected, the manager has
lost whatever powers was involved in his authority, and finds that his right has
become meaningless.
3.9.6 Competence Authority Theory
According to this theory, an individual derives authority from his
personal competence and charisma. According to Urwick, formal authority is
conferred by organisation, technical authority is implicit in a special knowledge
or skill whereas personal authority is conferred by superiority or popularity.
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Thus, a person may get his order accepted not because he is having any formal
authority, but, because of his personal qualities. These qualities include
technical competence and social prestige in the organisation.
All the three theories have their utility. Formal authority is basic to
managerial job. Acceptance authority and competence authority is the products
of leadership. Thus authority is generated from all sources in the university
administration.
RESPONSIBILITY
3.10.1 Meaning and Definition
Some writers have defined responsibility in terms of duty or activity
assigned to an individual in the administration.
According to M.E. Hurley, “Responsibility is the duty to which a person is
bound by reason of his status or task. Such responsibility implies compliance
with directives of the person making the initial delegation.”55
The term responsibility is used in management literature in two different
senses. Some writers have defined it as duty or task assigned to a subordinate
by virtue of his position in the organistion.
In more comprehensive sense responsibility may be defined as the
obligation of an individual to perform the duty assigned to him. According to
Koontz and O’Donnel, “Responsibility may be defined as the obligation of a
subordinate, to whom duty has been assigned to perform the duty.”56
Responsibility is an obligation to perform certain functions and to achieve
certain results.
However, others define responsibility in more comprehensive way and
treat it as the obligation of an individual to perform activities or duties which
are assigned to him. For example, Terry has defined responsibility as “the
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obligation of an individual to carry out assigned activities to the best of his
ability.”57 Thus responsibility is not merely duty that is assigned but an
obligation that the duty is performed. Responsibility comes into existence
because a person with authority requires assistance from another and delegates
authority to him for the performance of a needed specific work. The acceptance
of the obligation by the individual to perform the work creates his responsibility.
The main characteristics of responsibility are as follows:
1. Responsibility can be assigned to human beings only.
2. Responsibility arises from a superior-subordinate relationship. By virtue
of his superior position, a manager has the authority to get the required
work done by his subordinates.
3. Responsibility may be a continuing obligation or confined to the
performance of a single function.
4. Responsibility may be defined in terms of functions or targets or goals.
5. The essence of responsibility is obligation of a subordinate to perform the
duty assigned to him.
6. Responsibility is a derivative of authority. When a subordinate is
delegated authority he becomes responsible to his superior for the
performance of assigned task and for proper use of delegated authority.
7. Responsibility is absolute and cannot be delegated. A subordinate may
himself perform the duty assigned to him or he may get it done from his
own subordinate.
8. Responsibility flows upward. Always a subordinate is responsible to his
superior.
9. The person who accepts responsibility is accountable for his
performance. Accountability arises out of responsibility and the two go
together.
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DELEGATION OF AUTHORITY
3.11.1 Introduction
Delegation of authority is one of the important factors in the process of
organising. To delegate means to grant or confer. In university administration
delegation means conferring authority from one manager to or organisational
unit to another in order to accomplish a particular assignment. There are a
number of problems in the area of delegation in the university administrative
system. So a detailed study is essential to solve the serious problems in it.
3.11.2 Meaning and Definition
To delegate means to grant or confer the authority from superior (boss) to
subordinate to accomplish a particular assignment. It is simply a matter of
entrusting a part of the work of operations or management to others. In this
way, through delegation or transfer of authority, a manager multiplies himself
and gets results through others.
According to Allen delegation means, “The entrustment of a part of the
work, or responsibility and authority to another and the creation of
accountability for performance.”58
According to Moony, delegation means conferring specified authority by a
higher to a lower authority. It is the devolution of authority by a person to his
agent or subordinates subject to his right of supervision and control. Terry does
not agree with this interpretation. To him “delegation means confereing
authority from one executive or organisation unit to another.”59 It is not
necessarily devolution from a higher to a lower level; it may as well as be from a
higher to a lower level or between equal levels. Delegation may, thus, be
“downward, upward or sideward”. Downward delegation of authority is
illustrated by a sales manager to his salesmen; upward delegation by
110
stockholders to their board of directors; sideward delegation by certain African
tribal chiefs and their Central Tribal Authority.60
3.11.3 Elements of Delegation
In the process of delegation, three actions are involved. They are three
unique aspects of delegation.
1. Assignment of Responsibility: A manager assigns a certain
functions, work or duty to his subordinate for performance. This is termed as
assignment of responsibility. It is the creation of an obligation to perform the
assigned duties. Responsibility arises from the superior- subordinate
relationship.
2. Grant of Authority: A manager grants authority, i.e, rights and
powers to be exercised by the subordinate. Authority is derived from
responsibility. It is the right to perform certain assigned work or duties. It is
the power to order or command and is duly delegated or transferred from the
superior to the subordinate to enable him to discharge his or her responsibility
for the assigned work or duties.
3. Creation of Accountability: Just as responsibility arises from work,
and authority arises from responsibility, accountability is logically derived from
authority. Once a subordinate is entrusted with resposibility to perform certain
jobs and he or she is given sufficient authority to perform the assigned work,
the final phase in delegation (or basic organisation relationship) is holding the
subordinate answerable or accountable to his or her superior to fulfilling the
assigned responsibility, i.e., obligation to perform the assigned duties.
These three attributes or components of delegation (Responsibility-
Authority- Accountability) are like three legs of a stool. Each depends on
others.
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3.11.4 Process of Delegation
Delegation occurs when the responsibility or workload of one individual
manager becomes so great that he has to get help from others to get his work or
job done. Delegation is sharing know-how, responsibility, authority, budget,
materials and equipment to the degree necessary to get the work done and to
achieve the results as per plan.
The Executive Pyramid: The process of delegation creates an executive
pyramid with multiple levels of management. In a typical corporation, the board
of directors selects the chief executive. He is delegated the task of running the
entire business. He is the top man in the entire organisation and he has the
authority to do every thing required to achieve the corporate objectives.
3.11.5 Need for Delegation in Academic Administration
It is when university administration grows that the need for delegation
arises, because one person or a group of persons can no longer make all the
decisions in the university administration. Authority and responsibility along
with duties must, therefore, be divided. Delegation is one of the main ways for
dividing and distributing authority. Among the advantages of a sound system of
delegation are the following:
1. The various levels of the university administration are used more appropriately.
Thus, the Vice Chancellor is able to devote his attention to more important issues
and need not take time with decisions on operational details, which may suitably
be dealt with further down the line.
2. A sound system of delegation tends to develop an increased sense of
responsibility and an enhanced potential work capacity of individual
employees. One of the duties of the manager is to build up his
subordinates, and the best way to do it is to entrust them with
responsibility and authority.
112
3. The activities rendered by the university administration are improved
and are discharged efficiently economically and expeditiously by
centering action points as far down the line as possible and as close to
the scene where action is to be taken.
4. Proper delegation of authority is conducive to an effective control over
operations due to clear definition of responsibility and of action at each
level of the university administration.
5. Delegation also minimises delay when decisions have no longer to be
referred up the line.
3.11.6 Benefits of Delegation in Academic Administration
Delegation of authority is the key to the university administration.
Without delegation there would be no organisation- only one- man operations.
(2) Delegation permits the mangers to concentrate the real profession, viz,
management. (3) It gives time to plan, motivate and control. (4) It helps
subordinate to show initiative and develop him or herself on the job. It is a good
method of motivation of subordinates. (5) It offers the managers as well as the
subordinates additional peace of mind. (6) It is a magic way to accomplish more
with less worry and tension, and with less risk to health through being one-
man operation. (7) It promotes management development training and builds up
a good reservoir of executive skill and talents, because it creates managers and
not merely messengers.
3.11.7 Barriers in Effective Delegation in Academic Administration
The higher authorities in the university administration may not prefer to
delegate authority to his subordinates because of the following reasons.
1. If the standards of performance are very high it may not, be possible for
the subordinates to attain those standards even though adequate
authority is delegated. In the case of university administration it may
not be effective.
113
2. If the manager does not have the capability to direct the subordinates in
matters requiring his guidance, delegation becomes a failure. Moreover,
there must be proper communication of policies, programmes etc. to his
subordinates in order to make delegation effective in the university
administration.
3. If the superior in the university administration lacks confidence in his
subordinates he hesitates to delegate authority to them.
4. If qualitative controls cannot be established to measure the effectiveness
of delegation, it becomes difficult to know the extent of impact of
delegation in the university administration.
5. If the higher authorities do not have balanced temperament, he may not
wish to delegate, as he is afraid of taking chance.
6. If the higher authorities has dictatorial attitude and the desire to
dominate others, he will not delegate the authority.
7. If the higher authorities are afraid, that the subordinates may prove
themselves to be more efficient or competent, he will not delegate.
8. If the subordinates do not have the capacity to assume authority,
delegation is not possible.
9. If the subordinates have develop hostile attitude towards delegation; it
will not become effective.
CENTRALISATION AND DECENTRALISATION
3.12.1 Introduction
The issue of centralisation vs. decentralisation arises between the
superior and subordinate officers within an organisation. Broadly speaking, an
organisation is said to be centralised if most of the power of decision making is
vested in the top level so that the lower ones have to refer most problems to the
head of the organisation or his immediate subordinates for decision. A
decentralised organisation, on the other hand, is one in which the lower levels
114
are allowed the discretion to decide most of the matters which come up,
reserving comparatively a few bigger and more important problems only for
those higher up. The essence of centralisation or decentralisation, therefore,
lies in the distribution of the power of decision. If it were completely centralised,
it would mean the location of all power of decision in the head or chief who
would thus be overwhelmed with work. On the otherhand, complete
decentralisation would mean anarchy, each unit going its own way in its own
sphere. The issue of centralisation vs. decentralisation therefore, relates to the
point where the balance between the two should be struck. In academic
administration the organisations are more centralised than decentralised. All
the powers are vested in the top management, so the problems of centralisation
or the needs of decentralisation possess an important role in the academic
administration.
3.12.2 Meaning
Centralisation stands for concentration of authority at or near the top;
deecentralisation on the other hand, denotes dispersal of authority among a
number of individuals or units. In the words of White, “ The progress of transfer
of administrative authority from a lower to a higher level of government is called
‘centralisation’; the converse, ‘decentralisation’.”61 The essential element in
decentralisation is the delegation of decision-making functions.
3.12.3 Centralisation
According to Louis Allen: “Centralisation is the systematic and consistent
reservation of authority at central points within the organisation.”62
According to Henry Fayol, “Everything that goes to increase the
importance of the subordinates role is decentralisation, everything which goes to
reduce it is centralisation.”63
115
Centralisation refers to concentration of authority at one point or at
different levels. That is, the decision making power is reserved at higher levels
unlike the one in decentralisation, where authority is given to the personnel to
take routine decisions. Centralisation, reduces the importance of subordinates
and makes them mechanical, as the subordinates are only to execute whatever
is ordered.
3.12.4 Advantages:
1. Authority may be centralised by the Vice Chancellor and the Syndicate
as a matter of prestige and to show others that he is important in the
university administration.
2. Greater uniformity and standardisation can be achieved in policies,
decisions and other activities.
3. Overhead costs are less.
4. It facilitates strict control.
3.12.5 Disadvantages
1. It creates too many burdens on the Vice Chancellor and the Syndicate.
2. There is possibility of misuse of authority for selfish and self-centered
motives.
3. It kills the initiative and enthusiasm of the specialists and others, as they
are reduced to machines. They become puppets in the hands of the
executive.
4. Administration becomes dictatorial in nature, which may not be liked by
the employees.
3.12.6 Decentralisation
Decentralisation implies the dispersal of decision-making power at lower
levels of management. When the power to take decisions and formulate policies
does not lie with one person at the top but is passed on to different persons at
116
various levels, it will be a case of decentralisation. The decisions taken at lower
level should not only be more in number but important also. If insignificant
decisions are allowed to be taken at lower levels, then it will not be a case of
decentralisation.
3.12.7 Meaning and Definition
McFarland: “Decentralisation is a situation in which ultimate authority to
command and ultimate responsibility for results is localised as far down in the
organisation as efficient management of the organisation permits.”64 The
delegation of authority and responsibility is allowed downward upto a level it is
necessary. In McFarland’s views the degree and extent of delegations should be
determined as per the needs of the situation.
According to Louis Allen: “Decentralisation refers to the systematic effort
to delegate to the lowest levels authority except that which can only be exercised
at central points.”65
Newman, Summer and Warren: “Decentralisation is simply a matter of
dividing up the managerial work and assigning specific duties to the various
executive skills.” 66
Decentralisation of authority is not the same as delegation of authority.
Delegation of authority takes place from a superior to a subordinate. But in
decentralisation top management grants all the authority to the departmental
head or divisional head to make the unit autonomous or independent except the
authority for common policy matters of the organisation.
3.12.8 Making Decentralisation Effective in Academic Administration
Whether to decentralise or not depends on various factors. However,
when the university administrative system chooses for decentralisation to take
its benefits, it has to make some efforts to reap its advantages. Following are
some measures which make Decentralisation more effective.
117
1. Centralised Top Policy and Control- Though it appears to be
contradictory, for decentralisation to become effective, there should be
appropriate centralisation particularly in the context of policy
formulation in the university administration. This ensures the
integration of various parts of the organisation into a unitary whole.
2. Appreciation of the Concept of Decentralisation- A major problem before
decentralisation and its working is that managers do not really
understand and appreciate the philosophy of decentralisation and,
therefore, they are ready to pratcise it as organisational philosophy. This
concept is based on the premise that considerable autonomy will be
given to various units within the framework of the university
administration.
3. Development of Managers- The success of decentralisation depends on
the quality of managers whatever the structure is adopted and they will
show good result, it may be true but only good managers can not turn
the results unless their abilities and potentials are utilised properly in
the university administration.
4. Competition Among Units- Since various units of decentralised
organisation work independently, there should be proper competition
among these units. One of the basic problems in university
administration is that the middle level managers tend to assume
protected monopoly position and may develop complacency unless their
performance is measured objectively and independently.
3.12.9 Advantages of Decentralisation in Academic Administration
1. Reduces Burden: Decentralisation reduces burden of the top
management. As the departments are made autonomous, the concerned
departmental heads takes routine decisions and the top management is
relieved of the burden, so that it can concentrate on policy matters.
2. Easiness of Diversification: Decentralisation overcomes the problem of
diversification, as expansion programmes can be easily accommodated.
This is of immense importance in these days, as the organisations are
becoming more and more complex on account of growth in size.
3. Develops Generalist Managers: Decentralisation thrusts all the authority
and responsibility on the departmental heads to carry out all the
activities of their departments effectively. This requires the generalist
118
managers, who can look after all the functions of management namely
planning, organising, motivating, controlling, directing, coordinating,
communicating, and above all decision making.
4. Facilitates Control: As decentralisation makes the divisions autonomous
greater control can be achieved in the university administration.
5. Improves Morale: The employees are motivated to work with heart and
soul together as the authority is granted to them in its true perspective.
The morale of the employees also improves as they can take the
decisions.
6. Quick and Timely Decisions: Decentralisation permits to take quick and
timely decisions as the situation demands in the university
administration.
3.12.10 Limitations of Decentralisation in Academic Administration
1. Higher Cost: Decentralisation, because of its large set up is bound to
result in higher overhead costs in the university administration.
2. Problems of Coordination: Coordination becomes difficult as each
division is autonomous and authority is widely dispersed.
3. Emphasises Control at Policy Level: Decentralisation requires the
exercise of control at the time of framing the policy.
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122
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