module 01 administration v/s management

8/13/2019 Module 01 administration v/s management

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PRINCIPLES NDPR CTICE OFM N GEMENT

Dr. GOPINADHAN S.

M.Com., MBA, MIB, Ph.D.

MODULE 1 (2)


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ADMINISTRATION V/S MANAGEMENT

According to Fayol, Administration andManagement are same only thing is Administrationis used with reference to government functions andManagement is used with reference to businessorganisations. But the process and principles arethe same.

Oliver Sheldonsays Administration is concernedwith the determination of corporate policy, co-

ordination of finance, production and distributionand setting up an organisation structure underexecutive control.


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Management is concerned with execution of policywithin limits setup by administration and theemployment of organisation for achieving objectives

before it. Organisation is the process of so combining work

which individuals or groups have to perform withfaculties necessary for its execution, that the duties

so formed provide the best channels for efficient,systematic, positive and co-ordinated application ofavailable effort.


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Management Administration

1) It is concerned with activitiesintended to achieve theobjectives laid down byadministration.

1) It is concerned with the determination of majorobjectives

2) It is connected with lower levelmanagement.

2) It is connected with higher level management.

3) It puts the policy into action. 3) It lays down the policy.

4) It refers to a group ofemployees with specialised

knowledge.

4) It refers to the group of owners.

5) It is the process of guiding anddirecting the operations toachieve the goals

5) It is the process of taking important decision aboutthe enterprise


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LEVELS OF MANAGEMENT

Managers perform the functions of management - planning,organizing, Staffing, directing, and controlling - varies by levelsin the management hierarchy. The term supervisor could beapplied at all management levels of the organization to thosewho direct the work of others. In common usage, however, thetitle tends to be used only in the first level of the managementhierarchy. If an organization were divided into top, middle, andlower managerial levels, the term generally applies to the lowerlevel. The entire business enterprise, from the point of view of

management, can be divided into three levels, as shown in thefollowing diagram:


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Management Administration

6) It resembles the entirebody of a human being

6) It resembles draftsmen.

7) Its decision are influencedby values, beliefs andopinions.

7) Its decisions are influenced by public opinion,social, economic, religious and governmentalfactors.

8) It is the executive functionof getting things done byothers.

8) It deals with overall determination of majorobjectives.

9) This term is widely used inmodern times.

9) This term was often used in ancient times.


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I) Top Level Management: In a corporate body theBoard of Directors, Managing Director, GeneralManager form the top level management. They are

responsible to the shareholders, government andpublic. It is they who set and define the objectives,formulate strategy and policies, evaluate and judge theresults of the managers. They issue instruction forimplementation of policies and take steps for

accomplishment of the objectives by collecting theresources of the organisation. Top level managementinvolves creative imagination, initiative, and sense ofjudgments.


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II) Middle level Management:Middle level management dealswith task of implementing the policies and plans formulatedby the top level. Heads of department like productionmanager, marketing manager, personnel manager form the

middle level management. They have the right to givesuggestions to top level management regarding plans andpolicies. The Middle level management is responsible for theexecution and interpretation of policies throughout theorganization and for the successful operations assigned to

the division or departments. In this level the managers haveto plan the operations, issue instructions laid by the topmanagement, collect the resources required and control thework of the men.


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Setting key objectives, policies and identifying factors

essential for the development of the enterprise.

Efficient accomplishment of goals in the enterprise and

maintaining strategic balance in all actions taken by theauthorities in higher level.

Making appointments to the top position in the enterprise

such as managers, department heads etc.

Reviewing the work of different personnels in all levels.

Controlling is the main function of the top management.

Functions of the Top Level Management.


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Important functions performed in the middle levelmanagement are as follows.

Following the rules and policies formulated by the

top management. Motivating personnel for higher productivity.

Collecting detailed analysis report of thedepartment and the personnels.

Mutual understanding with other departments inthe enterprise.

Recommendations to top management.

Functions of the Middle Level Management.


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III) Lower level Management: Foreman,supervisors and sub-departmental executivesform the lower level management or first line

management. They follow the decisions ofhigher levels and are important for theorganisation, because it is they whoimplement the policies and help to attain the

organisations goals and objectives.


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TR DITION L NDPROFESSION L M N GEMENT

Traditional ManagementProfessional / Modern

Management

It rarely imparts training and development

programme.

It emphasises on training and

development programmes for itsemployees.

Static, unrealistic, rule of thumb, trial anderror, conservative and classical approachis followed

Scientific, dynamic, modern, Neo-classical and growth approach isfollowed.

It focuses on individuals. It focuses on teamwork.

Specialisation is limited. There is large degree of specialisation.

It tends to be less effective in changingcompetitive environment.

It is more effective to meet challengesof changing competitive environment.


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TR DITION L NDPROFESSION L M N GEMENT

Traditional ManagementProfessional / Modern

Management

The business is owned, financed, managedand controlled by family members.

The business may be financed andowned by shareholders, but is managed

by professional managers.The style of management is generallyautocratic or paternalistic.

The style of management dependsupon the situation, but mostly it isconsultative or participative.

Family relationship, castes, community isthe main factor in selection of employees.

Education, experience and ability is thefactor in selection of employees.

Decision making is centralised. Decision making is decentralised.There is more emphasis on downwardcommunication.

It makes use of both upward anddownward communication.


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TH NK YOU

module 01 administration v/s management

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