MANAGEMENT,ADMINISTRATION AND SOME BASIC PRINCIPLE

Defination of Management :According to Harold Koontz, “Management is an art of getting things done through and with the people in formally organized groups. It is an art of creating an environment in which people can perform and individuals and can co-operate towards attainment of group goals”.

According to F.W. Taylor, “Management is an art of knowing what to do, when to do and see that it is done in the best and cheapest way”.

Practical Knowledge

Personal Skill

Creativity

Perfection through practice

Goal-Oriented

Management as art:

Universally acceptance principles Experimentation & Observation

Cause & Effect Relationship

Test of Validity & Predictability

Management as science

Scope of Management:

The existence of management ensures proper function and running of an enterprise.

Management plas the activities ,coordinates and utilizes the available recourses effectively and efficiently at minimum cost.

Scope of management is not limited only to business organization ,but it is extended to business establishment ,hospitals,educational institutions,govt offices,service organizations,security organization etc.

Defination of Administration:

The definition of administration refers to the group of individuals who are in charge of creating and enforcing rules and regulations, or those in leadership positions who complete important tasks.

Administration is defined as the act of managing duties, responsibilities, or rules.

Adminstration involves ”thinking” , it is top level function.

Management involves ”doing” , it is lower level function.

Management and Administration :

  Management Administration

Definition Art of getting things done through others by directing their efforts towards achievement of pre-determined goals.

Formulation of broad objectives, plans & policies.

Nature executing function, doing function

decision-making function, thinking function

Scope Decisions within the framework set by the administration.

Major decisions of an enterprise as a whole.

Level of authority Middle level activity Top level activity

Management Administration

Status Group of managerial personnel who use their specialized knowledge to fulfill the objectives of an enterprise.

Consists of owners who invest capital in and receive profits from an enterprise.

Usage Used in business enterprises. Popular with government, military, educational, and religious organizations.

Influence Decisions are influenced by the values, opinions, beliefs and decisions of the managers.

Influenced by public opinion, government policies, customs etc.

Main functions Motivating and controlling Planning and organizing

Abilities Handles the employees. Handles the business aspects such as finance.

Levels of Management

There are 3 levels of management :

1. Top level Management2. Middle level Management3. Lower level or first line Management

Henri Fayol’s 14 Principles Of Management:1. Division Of WorkWork should be divided among individuals and groups to ensure  that effort and attention are focused on special portions of the task.

2. Authority & Responsibility

The concepts of Authority and responsibility are closely related. Authority was defined by Fayol as the right to give orders and the power to exact obedience. Responsibility involves being accountable, and is therefore naturally associated with authority. Whoever assumes authority also assumes responsibility. 3. Discipline

According to Fayol, “Discipline means sincerity, obedience, respect of authority & observance of rules and regulations of the enterprise”.

4. Unity Of CommandEach worker should have only one boss with no other conflicting lines of command.

5. Unity of Direction

The entire organization should be moving towards a common objective in a common direction.

6. Subordination of individual interests to the general interests

The interests of one person should not take priority over the interests of the organization as a whole.

8. EquityThe employees should be treated with fairness, kindness & justice if devotion is expected of them.It implies that managers should be fair and impartial while dealing with the subordinates.

7. Initiative

Management should encourage initiative. That is, they should encourage the employees to suggest ideas, experiences& new method of work.

9. Scalar chain Scalar Chain is a line of authority. This line joins all the members (managers and employees) from top to bottom. Every member must know who his superior is.He must also know who his subordinate is. Scalar Chain is necessary for good communication. Scalar Chain must not be broken in norm circumstances.

10. Order

There should be an Order for Things and People in the organization. Order for things is called Material Order. Order for people is called Social Order.

11. Centralization (Or Decentralization)

Centralization means concentration of authority at the top level. In other words, centralization is a situation in which top management retains most of the decision making authority.Decentralization means disposal of decision making authority to all the levels of the organization. In other words, sharing authority downwards is decentralization.

14. Esprit de Corps

Management must foster the morale of its employees. He further suggests that: “real talent is needed to coordinate effort, encourage keenness, use each person’s abilities, and reward each one’s merit without arousing possible jealousies and disturbing harmonious relations.”

12. Stability of Tenure of Personnel

Employees work better if job security and career progress are assured to them. An insecure tenure and a high rate of employee turnover will affect the organization adversely

13. Remuneration

Remuneration is the price for services received. If an organization wants efficient employees and best performance, then it should have a good remuneration policy. This policy should give maximum satisfaction to both employer and employees.

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