Management & Administration Ms. SMita Rao

INTRODUCTION. Adminisatration determines the specific goals & lays down the broad areas within which those goals are to be achieved. Management is planning, organizing, leading & Controlling of human & other resources to achieve organizational goals effectively & efficiently. Ms. SMita Rao

(Execution & direction of plans & policies) ADMINISTRATION MANAGEMENT THINKING (Plans , policies & objectives) DOING (Execution & direction of plans & policies) Ms. SMita Rao

In 1923, the terminological conflict between the two terms was raised by Oliver Sheldon in his book ‘The Philosophy of Management’ when he emphasized administration as decision-making function and management as execution function .After that, this distinction between the two terms was emphasized by many and the terminological conflict proceeded further. Various views expressed in this regard have led to the emergence of three approaches. Ms. SMita Rao

Three Approaches for Management VS Administration Administration is above management: Administration is a part of management; Management and administration are same. Ms. SMita Rao

Administration is Above Management. The general view is that administration relates to policy formulation and management relates to policy execution and these two activities are the same. For example, Spiegel states that: “Administration is that phase of a business enterprise that concerns itself with the overall determination of institutional objectives and the policies necessary to be followed in achieving those objectives. Management, on the other hand, is an executive function which is primarily concerned with carrying out broad policies laid down by the administration.” Since these sets of functions are different, different types of persons with different sets of qualities are required Ms. SMita Rao

ADMINISTRATION IS THE PART OF MANAGEMENT. There is another of though which treats management as more comprehensive function which includes administration also. EX: Brech has viewed management & administration in the following way: “Management is a generic name for the process of executive control in industry or commerce. It is a social process entailing responsibility for the effective & economical planning & regulation of the operation of an enterprise, in the fulfillment of a given purpose or task. Administration is that part of management which is concerned with installation & carrying out of the procedures by which it is laid down & communicated, & the process of activities regulated & check against plans.” Ms. SMita Rao

Management & Administration are Same. Management & Administration are synonymous, the difference between the two terms lies mostly in their usage in different countries or different field of human organizations,EX: Lipinski has made observation that: “The British conception seems to be the general European usage in which management is given a broader meaning than administration. In American usage, administration includes management & organization.” Management is normally used in business sphere. However, Whether administration is used in non-business field & management is used in business field does not make a fundamental distinction between the two because of similarly of the process involved in these. In fact, even this distinction is also disappearing Ms. SMita Rao

Difference Between Administration & Management Basis of difference Administration Management 1. Level in organization Top level Middle and lower level 2. Major focus Policy formulation and objective determination Policy execution for objective achievement 3. Nature of functions Planning, organizing & Staffing Direction, Motivation & Control 4. Scope of functions Broad and conceptual Narrow and operational 5. Factors affecting decisions Mostly external Mostly internal 6. Employer-employee relation Entrepreneurs and owners Employees 7. Qualities required Administrative Technical Ms. SMita Rao

Practically, there is no difference between management & administration. Every manager is concerned with both Practically, there is no difference between management & administration. Every manager is concerned with both - administrative management function and operative management function as shown in the figure. However, the managers who are higher up in the hierarchy denote more time on administrative function & the lower level denote more time on directing and controlling worker’s performance i.e. management. Ms. SMita Rao

Top management spent more time in administration activities As goes down in the organizational Chart more time spent in management Board of Di rectors President General Manager Functional Manager Foremen Administration Management Ms. SMita Rao

Representative Organization Ethical Standards Service Above Cell The various applications of benchmarks of a profession can be analyzed as below- Body of knowledge Formal education Representative Organization Ethical Standards Service Above Cell Ms. SMita Rao

Management as a profession. Professionalisation makes business more efficient, dynamic and socially responsible. Is management a profession According to Abraham Flexner, A profession is – A body of specialized knowledge and recognized educational process of acquiring it. A standard of qualifications governing admission to the profession. 3) A standard of conduct governing the relationship of the practitioners with clients, colleagues and the public. An association or social responsibility inherent in an occupation & the public interest. 5) An association or society devoted to the advancement of the social obligations as distinct from the economic interests of the group. Ms. SMita Rao

Professionalism of management in India 1)Licensing is non-existent 2)Lack of Client system In common parlance Indian management is described as ‘family management’ with ‘tradional values’ of the organization are in the The two distinguished feature of family management are that both ownership & control hands of members of a family & that organizational objective is to maximize profits even if it necessitates exploitation of the weaker sections of the society. Ms. SMita Rao

Reasons For Professionalism of management in India Growing Competition Fast Changes In Technology Divorce Between ownership & management Need to manage large scale units Ms. SMita Rao

Future of Management as a Profession in India Future of Management as a Profession in India. 1)Education & training 2)Improve the quality of management 3)Improve the status & prestige . Ms. SMita Rao

Skills Required Of Manager 1) Technical skill 2) Interpersonal skill or Human skill 3) Conceptual skill 4) Diagnostic skill 5) Political skill Ms. SMita Rao

Technical Skill Technical skill involves understanding , performing specific tasks, demonstrating proficiency in a particular workplace activity. The Technical skill used will differ in each level of management. Required in lower management. As one moves to higher levels of management within organization , the importance of technical skill diminishes because the manager has less direct contacts with day to day problems & activities. Ms. SMita Rao

Human Skill Human skill involves human relations, the manager’s ability to interact effectively with an organizational member. This skill is critical at all levels of Management. Which in turn, necessitates an insight into human needs & ways & mans of motivating people. Ms. SMita Rao

Conceptual Skill Taken By top management Conceptual skill is a manager’s ability to see the organization as a whole, as a complete entity. Conceptual skill is crucial for top manages, whose ability to see “the big picture” can have major repercussions on the success of the business. for example, how work units & teams are best organized. Taken By top management Ms. SMita Rao

Diagnostic skill Diagnostic skill is used to investigate problem, decide on a remedy, & implement a solution. It involves understanding how organizational units work together & how the organization fit into its competitive environment. Ms. SMita Rao

Political skill Political skill involves obtaining power & preventing other employees from taking one’s power. Manager’s use power to achieve organization objectives & this skill can often reach goals with less effort than others who lack political skill. Ms. SMita Rao

Classification of skills. PLANNING SKILLS ORGANISING SKILLS LEADING SKILLS CONTROLLING SKILLS DECISION MAKING SKILS Ability to think ahead Ability to analyze & describe Ability to see the big picture Ability to keep activities on the desired paths Ability to make good & timely decisions. Ms. SMita Rao

Method of skill development Management skill are linked to a more complex knowledge based. It involve interaction with other person & it difficult to predict other person behavior. 1)Practical application 2)Learning & behavioral practice 3)A opportunities to practice Ms. SMita Rao

Three important modification The prescribed behavioral principles or guidelines should be supplemented with scientifically based on knowledge. Little feedback about their current level of skill competency. Most management skill training in a class room. Ms. SMita Rao

What is "Management Ethics”? The concept has come to mean various things to various people, but generally it’s coming to know what it right or wrong in the workplace & doing what’s right- this is in regard to effects of products/services & in relationships with stakeholders. Wallace & Pekel explain that attention to Management ethics is critical during times of fundamental change- times much like those faced now by businesses, both non-profit or for-profit. Ms. SMita Rao

Benefited of Management Ethics in the Workplace Attention to Management ethics has substantially improved society. Ethics programs help maintain a moral course in turbulent times. Ethics programs cultivate strong teamwork & productivity. Ethics programs support employee growth & meaning. Ethics programs are an insurance policy – they help ensure that policies are legal. Ethics programs help avoid criminal act “of omission “& can lower fines. Ethics programs help manage values associated with quality management, strategic planning & diversity management – this benefit needs far more attention. Ethics programs promote a strong public image. Overall benefits of ethics programs. Last - & most – formal attention to the workplace is the right thing to do. Ms. SMita Rao

Management culture Introduction When we talk about culture, we are typically to the pattern of development reflected in a society system of knowledge, ideology, values, laws, social norms & day to day rituals. Ms. SMita Rao

Characteristics of management culture Observed behavioral regularities Norms Dominant values Philosophy Rules Organizational climate Ms. SMita Rao