ADMINISTRATIVE MANAGEMENT PERSPECTIVE

SUBJECT

MANAGEMENT THEORY AND PRACTICES

FACULTY DATE

: :

Prof. Raghupathy 05-09-2011

Manjunath.J Raj Kumar.J Deepthi.R Susan.G

ADMINISTRATIVE MANAGEMENT APPROACH

WHAT IS THEORY?
Theory is a Systematic grouping of interdependent concepts and principles, which give a framework to a significant area of knowledge. Theory is a Coherent group of assumptions put forth to explain the relationship between two are more observable facts. In the field of management the role of theory is to provide a means of classifying significant and pertinent management knowledge. Theories provide a stable focus for understanding what we experience. Theories make it possible for us to keep learning about our world. The theoretical foundations of management lie in the classical approach to management, which sought to formulate rational principles that would make organizations more efficient.

ADMINISTRATIVE MANAGEMENT:
Basically focuses on how a business should be organized and the practices an effective manager should follow. Administrative management is about managing information through people. Information is central to all management processes and people are the resources who make best use of that information to add value. Evidence of good administration is when you dont know it is happening! The Lord Peston of Mile End.

GENERAL ADMINISTRATIVE APPROACH:

General administrative approach was concerned with the overall organization and how to make it more effective. The important contributors are, I HENRI FAYOL(1841-1925), a French Industrialist, put forward and popularised the Concept of Universality of Management Principles, the idea that all organizations could be structured and managed according to certain rational principles. Fayol divided a commercial organizations activities into the six basic elements of Technical, Commercial, Accounting, Financial, Security and Management. He described the practice of management as distinct from the other business activities. He discussed 14 general principles of management which he felt could be applied in any organizational setting. Several of these principles are part if management philosophy today. 14 PRINCIPLES:

1. Division of Labour 2. Authority 3. Discipline 4. Unity of Command 5. Unity of Direction 6. Subordination of Individual Interest to the Common Good 7. Remuneration 8. Centralization 9. The Hierarchy 10. Order 11. Equity 12. Stability of Staff 13. Initiative 14. Esprit de Corp According to Fayol the five functions of managers were:

Plan Organize Command Coordinate Control.

Fayol emphasized the role of administrative management and concluded that all activities that occur in business organizations could be divided into six main groups. 1. Technical (production, manufacturing); 2. Commercial (buying, selling, exchange);

3. Financial (obtaining and using capital); 4. Security (protection of property and persons); 5. Accounting (balance sheet, stocktaking, statistics, costing); 6. Managerial (planning, organizing, commanding, coordinating, controlling). II MAX WEBER (1864-1920), a German Sociologist, described an ideal type of organization

that he called Bureaucracy, characterized by division of labour, a clearly defined hierarchy, detailed rules and regulations, and impersonal relationships. His theory became the design prototype for many of todays large organizations. III CHESTER I.BARNARD (1886-1961) saw organizations as social systems that require human cooperation. A major part of an organizations success depended on the cooperation of its employees. He went further to emphasize the organization as the cooperative enterprise of individuals working together in groups. One of Barnards significant contributions was the informal organization. The informal organization occurs in all formal organizations and includes cliques and naturally occurring social groupings. Another significant contribution of Barnard was the acceptance theory of authority, which states that people have free will and can choose whether to follow management orders. By recognizing the organizations dependence on investors, suppliers, customers, and other stakeholders, Barnard introduced the idea that managers had to examine the external environment and then adjust the organization to maintain a state of equilibrium. IV V COLNEL LYNDAL URWICK LUTHER GULICKS

THE ADMINISTRATIVE APPROACH:

Administrations (local or central) can use their administrative powers to: React on illegal activities or organised crime (e.g. by imposing administrative sanctions) Prevent illegal organised crime activity using administrative instruments to reduce opportunities for organised crime (urban renewal, registration obligations, licensing ...) Prevent organised crime to participate in legal activities (e.g. screening of permit applications, exclusion from public tenders ...) The use of an administrative approach to combat organised crime differs between Member States: - according to the perception of the organised crime situation (e.g. Italy vs. Sweden): Kind of information used and collected by the administration to act (convictions, suspicions, ) - according to the model chosen:

I . independent administrative approach II . subsidiary administrative approach Independent Administrative Approach: The (central or local) administration is the main actor in organised crime prevention: decision of the administration based on (criminal) intelligence. Need for special (data protection) rules to allow for information transmission between judicial and administrative authorities. Subsidiary Administrative Approach: The (central or local) administration uses decisions of judicial authorities for organised Crime prevention.

I. ADMINISTRATIVE APPROACHES IN SCIENTIFIC ORGANISATIONS:

Prof. Vikram Sarabhai, Indian Space Technology Visionary & Scientist Administrative practices are of paramount importance in creating environmental factors within an organization. The commitment, motivation and effectiveness of men working in an organization are directly related to these factors. The men in turn create the practices and establish the traditions. The training and experience of men as well as the assumptions that they carry about how the organizational task can be achieved will, in the last resort, determine the ability of the organization for effective performance. The importance of this is all the more, since the informal structure of an organization is as important as the formal structure in giving real flavour to it. Thus, men, practices and structure form a totality or a culture relevant to the task of administrative reform. The twin tasks of Government, preservation and innovation, call for working cultures which are rather different. At one end of such a spectrum are certain administrative services acting on precedents and traditions, providing security and continuity and impersonalised to the extent that if one person is substituted by another, every member of the organization is fully aware of how the successor will behave and operate under a given set of circumstances. At the other end, there are organization based on research and development involving individuals who act on insights and hunches, non-conformists, questioning assumptions, innovating and learning. These two extremes clearly require organization and working culture which are rather different.

Nevertheless, many tasks in the contemporary world call for organizations wherein creative thinking and innovation are essential ingredients of survival as well as growth. Institutions for innovation require organization built around men. No organization chart should stand in the way of recognizing and rewarding talent. Moreover, the early beginnings of any institution are crucial and the culture (or lack of it) brought by the entrants plays a significant role in establishing the norms, Procedure and practices of the organization. The numbers of such entrants should, in addition, be large enough to achieve the critical size necessary to permit positive interactions. The introduction of persons from a different working culture will, however, seriously impede the operation of such organization. The appointments, for example, of competent government officials whose experience is primarily derived from routine administration in key positions or in large numbers at lower positions in research organizations or in industrial enterprises would thus be highly questionable. For it has been found in the last 20 years that thought many of these organization are established As autonomous in the legal sense, administrative practices are introduced which negate the granted. In professional groups, such as those of scientists, engineers it is important to recognize that motivation and control are largely inherent and contained in professional commitments. Money, hierarchical status and power are important for most cadres, but to scientists and professional groups, the need for autonomy of working conditions and opportunities for self-development are equally important. The exercise of control, for example, through the discussion and the judgment of peers is a unique feature of scientific organization positive benefit to themselves, but they do have a choice. He proposed that an enterprise can operate efficiently and survive only when the organizations goals are kept in balance with the aims and needs of the individuals working for it.

II. TRADITIONAL ADMINISTRATIVE APPROACH TO SPECTRUM MANAGEMENT:

A. The Traditional Administrative Approach to Spectrum Allocation, Allotment, and Assignment As noted above, the radio spectrum resource has traditionally been allocated, allotted, and assigned by the federal government through an administrative process, that is, by the issuance and enforcement of government regulations. Because there are both competing uses and users for scarce spectrum, the FCC must decide which uses and users best serve the public interest. According to the commission, in making allocation decisions in the public interest, it takes into account 1. public needs and benefits,

2. technical considerations, and 3. Apparatus limitations. For example, under public needs and benefits, it considers such factors as the dependence of the service on radio rather than wires and the relative social and economic importance of the service. Under technical considerations, the FCC considers the service's need for a particular portion of the spectrum because of propagation characteristics or compatibility with existing services. Under apparatus limitations, it considers the upper, practical limit of the useful radio spectrum range and actual operating characteristics of transmitters, receivers, and antennas. In addition to allocating and allotting the spectrum in the public interest by reviewing the factors described above, the FCC must assign channels (or groups of channels) to individual licensees. As noted earlier, some channels in a geographic area may be assigned only to one party, that is, they are exclusive. If more than one person or entity applies for an exclusive channel, the applications are said to be mutually exclusive. Traditionally, the FCC chose (and in some services still chooses) from among mutually exclusive applications through a "comparative hearing". Comparative hearings are adjudicatory in nature. The FCC selects the winning applicant in a quasi-judicial hearing process using comparative criteria established by precedent or formal rulemaking. B. Perceived Problems with the Traditional Administrative Approach As described above, spectrum management can be divided into two distinct phases: the allocationallotment phase and the assignment-licensing phase. Succinctly stated, in the United States, both the allocation-allotment and assignment-licensing phases involve centralized administrative processes. In the case of the former, the process involves formal rulemaking proceedings, and in the case of the latter, formal adjudicatory proceedings. It is beyond the intended scope of this paper to delve into all the real or perceived problems with the traditional administrative approach to spectrum allocation and allotment. However, as indicated in section I, the most fundamental problem with the traditional approach is that it represents a centrally administered method of allocating a scarce resource. As many Communist-block countries with centrally managed economies found to their chagrin, it is extremely difficult to allocate resources without the benefit of marketplace pressures and signals. Consequently, it should come as no surprise that the centralized allocation of increasingly valuable radio spectrum suffers from the same defects, including excessive rigidity, delay, waste, and high regulatory costs for the government and the private sector. Perhaps the most publicized failure of the administrative process in allocating spectrum was the prolonged delay occasioned by the FCC's efforts to reallocate and license spectrum for the cellular mobile radio service. Many observers believe that the delay, almost 20 years by some accounts, seriously harmed the public by denying

them a service that history, if nothing else, has demonstrated that they value highly, and by significantly diminishing American industry's initial lead in cellular radio technology in the international marketplace.

III.ADMINISTRATIVE APPROACH OF HELLs PIZZA:

The Frenchman Henri Fayol put together the fourteen principles of administrative theory, and although adapted due to changes in the industrial environment, these principles are still visible in organisations, such as Hells Pizza, today. Both the principles of division of labour and the scalar chain are evident, and used effectively to fulfil their purpose, in Hells Pizza as an organisation and work force. Although some components of these principles are used more effectively than others, Fayols approach to management has proved useful in the productivity and efficiency of business over eighty years after his death. The use of division of labour or specialisation by Hells Pizza proved extremely useful in boosting productivity and when used effectively, as done by Hells Pizza, the rewards of specialisation are great. As well as specialisation; the use of the scalar chain to motivate and enforce unity of command and authority aided in the up-rise of greater productivity within Hells Pizza. Hell Pizza International is owned by Warren Powell, Callum Davies and Stu McMullin. In 2006, Hell sold the New Zealand Master Franchise rights to Tasman Foods (NZ master franchisee for Burger King) for NZ$15,000,000 and aimed to expand to the UK. The NZ Master Franchise rights were purchased back from Tasman Foods in 2009. There are currently 64 stores nationwide in New Zealand. Since arriving to the UK in 2006, Hell have opened a pilot store in Fulham, as well as two franchisee operated stores in Clapham and Shepherds Bush, all in London. Australia has opened 10 stores in South-east Queensland with plans for 30 Queensland operated shops by 2011. After weeks of early closings and outages of stock, such as pre-madebases, the Monier Road shop in Darra was taken off their corporate ordering system and finally closed down and abandoned in early 2011. Hell also opened its first stores in Dublin, Ireland and Vancouver, Canada by the end of 2009. The pilot store for Hell Pizza was called "The Pizza Place" it opened in Wainuiomata, Lower Hutt, and New Zealand two years prior to the Hell Pizza brand being established. In July 2010 the Hell Pizza customer database was cracked, affecting over 230,000 customers.