Administration Meaning of Administration The word administer is derived from the Latin word ad+ ministraire means to care

for or to look after people- to manage affairs. Definitions of Administration According to Pfiffner and PresthusAdministration is the organization and direction of human and material resources to achieve desired ends. According to Marx Administration is determined action taken in the pursuit of a conscious purpose. It is the systematic ordering of affairs and the calculated use of resources aimed at making those things happen which one wants to happen- and forestalling everything to the contrary. According to Luther Gullick Administration has to do with getting things done; with the accomplishment of defined objectives. According to Herbert A Simon Administration is the activities of groups co-operating to accomplish common goals. According to Goel Administration may be defined as the management of affairs with the use of well thought out principles and practices and rationalized techniques to achieve certain objectives.

Philosophy of Administration: Administration is a moral act and also a moral agent. The philosophy underlying the whole field of administration , particularly as it applies to health work, is based on the following key points: 1.Administration Believe in CostEffectiveness 2.Administration Believes in Execution and Control of work Plans 3.Administration Beliefs in Delegation of Responsibility and authority. 4.Administration beliefs in human relations and Good Morale 5.Administration beliefs in effective communication 6.Administration beliefs in flexibility in certain situation Elements / Functions of Administration Administration may be defined as all the actions rationally performed by one person or a number of persons in concert to fulfill a common purpose set by someone else of their accomplishment.

Professor Luther Gullick (1937) summed up certain principles or elements in the word POSDCORB. 1.Planning 2.Organising 3.Staffing 4.Directing 5.Co-ordinating 6.Reporting 7.Budgeting Management: Definitions : According to Joseph Massie: Management is defined as the process by which a co-operative group directs action towards common goals. According to George : Management is distinct process consisting of planning , organizing, actuating, activating, and controlling, performed to determine and accomplish the objectives by the use of people and resources. According to O Tead : Management is the process and agency which directs and guides the operations of an oragnisation in realizing established aims. According to James Lunde : Management is principally the task of planning , co-ordinating,

motivating and controlling, the efforts of others towards a specific objective. Concept of Administration and Management Both Administration and Management are processes. Both are concerned with attainment of certain pre-determined objectives . As the science of administration and management started developing , particularly after the second world war, different viewpoints concerning these two terms emerged. Some management experts hold that these two are synonymous. Some others hold that these are two distinct terms. Besides, the term Management is used in many different ways. Let us examine these concepts under i) Administration and Management considered as synonymous ii) Different interpretations of the term management iii) Administration and Management considered as two distinct terms. i) Administration and Management considered as synonymous This viewpoint holds that all administrators or managers perform the same managerial functions depending on the levels of management they belong to. In an organization two sets of people one designated as administrators and the other as managers are never required. What we find is

that the top level administrators or managers are engaged in performing the administrative functions whereas the first level managers are involved in caring out the executive functions.

ii) Management and Administration are Synonymous : There is no distinction between the terms management and administration . The term management is used for higher executive functions like determination of policies , planning, organizing , directing, and controlling, in the business circles, while the term administration is used for the same set of functions in the Government circles. So there is no difference between these two terms and they are often used interchangeably. Manager spends a part of his time in performing administrative management functions and the remaining time on operative management functions . However, the managers who are higher up in the hierarchy devote more time on administrative functions. They are known as top management, . Top management devotes a major portion of its time in determination of objectives and laying down of policies. Managers at the lower levels in the hierarchy devote comparatively less time on administrative functions and they are concerned more with directing, coordinating

and control functions of management for the achievement of organizational objectives.

iii) Different interpretations of the term Management The term management has been interpreted a)as a process b)as a discipline and c) as a noun a)A a noun , management is referred to as: i) A system of authority lying in a team of managers who are responsible for making decisions and accountable for the consequence of their decision making and supervising the work of the subordinates. b) As a process , management is considered to be that process which is involved with executing different interrelated activities within an organization for realizing the organizational objectives in accordance with the organizational plans and policies. c)As a discipline : Management has been considered as a distinct discipline since it

Management

Administration

has a systematized body of knowledge and requires specific skills and use of available decision making tools. ii) administration and management as two distinct terms . This distinction is made a) on the basis of the nature of organization and b) on the basis of the levels of administration / management. a) Differentiation based on he nature of organization In accordance to this view, Administration should relate to government and other organizations concerned with social and political goals and Management should relate to business enterprises concerned with the objective of surplus generation. b) Differentiation based on the level of administration / management Two schools of thought exist in this regard viz. the American School of Thought and the British School of Thought. Both relate to the levels of administration or management. The American School of Thought hold administration as a broader concept concerned with the thinking function within an organization resting with the top level administrators for determining objectives of the enterprises, making plans for the organization and formulating organizational policies.

Management on the other hand is considered as the force that gives leadership and direction in realizing the predetermined objectives according to the guidelines given in the organizational policies and executes the plans of action and thereby concerned with the doing function. The British School of Thought on the contrary considers management as a wider concept concerned with the functions of the top level managers and administration concerned with the executive functions of the lower level managers. A reconciliation between the two schools of thought has been brought about by classifying management as follows: i) Administrative Management : Involve with planning functions resting with top management level. ii) Operative management : Involves with planning functions resting with the middle and first management levels. Discussions on the different viewpoints From the above discussion it is clear to you that barring the interpretations of management being a discipline, a class and an authority, all viewpoints state that: a)Both administration and management are processes.

b) Administrative functions vary according to the levels of administration c)There are two broad categories of functions in the process of administration, viz.: The thinking functions The doing functions The thinking functions primarily relate to planning and organizing including planning and organizing for staffing. The doing functions relate to staffing , directing, coordinating and controlling. Inference Administration and management , both can basically be considered as a process which is undertaken to attain laid down objectives of an organization.
Administration Administrative Management

A thinking function involving Formulation of objectives, plan and policies (Rests with top level mangers) Management Operative Management A doing function involving executive function (Rests with middle and first level management)

Propose and scope of Administration Purpose: The main purpose of administration is to facilitate or help the functioning within an organization maintaining a high standard of performance.

Scope any organization be it A business enterprise under the public or private sector A Govt. undertaking An educational institution A hospital As association A charitable organization A social or service club A trust A Govt. or Non-Governmental organization A public library A newspaper establishment Different departments within an organization in a community organization under a local body or municipality

Levels of Administration Top Management Level Middle Management Level First Management or Operating Management Level

Skills required for administrators and mangers fall into three main categories which are termed as i) Intellectual skills ii) Human skills iii) Technical skills

Intellectual skills will include: The thinkig skills- both critical and analytical Conceptual skills (ability to formulate concepts) and Decision making skills

Human skills are the skills concerned with effective communication empathy . Technical skills are concerned with dexterity professional skills and expertise. (Injection) Skills Management levels

Categories Top Middle First ______________________________________ _______________________ Intellectual skills +++ Human skills +++++ ++++++ +++ ++++ ++++++ +++ skill mix at

Technical skills +++ ++++++ Diagram of Management Levels

Process and nature of administration Process of Administration Nature of Administration The nature of administration is:

i)

Universal and Holistic : Administration is universal irrespective of the nature of the organization and objectives of the organization.

Holistic : The process of administration embraces the organization and its function in entirely ii) Intangible : Administration is abstract, it cannot be seen but its effect can be felt. iii) Continuous and ongoing : Administration continues in an organization , if it stops its functions, chaos will result in the organization. iv) Goal Oriented : Administration always is striving to obtain the laid down goals or objectives of an organization. v) Social and Human : The administrative process basically handles different groups of people who belong to the organization vi) Dynamic : Administration has the elements of flexibility and adaptability and adjustability rising to the needs and demands of different situations. Hence administration cannot remain as static. vii) Creative or Innovative : To be effective the administrative process gets away from stereotypes.

Important Features of the Administrative Process i) Goal orientation : The entire process is for realizing the goals or objectives of an enterprise ii) Depicts the nature of job : The process determines the nature of job be carried out by the managers in order to fulfill the predetermined goals of the organization. iii) Continuity : The process is ongoing and continuous iv) Existence of sequence in management functions v) Interrelationship: All administrative functions are interrelated . None of these functions take place in isolation or in parts. vi) Applicability of one function to another vii) Common to all organizations : The administrative process is common to all organizations irrespective of the purpose for which the organization is established viii) Providing framework for guidance .

Effective administration and Management : Effective administration not only helps in doing so but also provides the required satisfaction to the employees as well as to the management as the targets are fulfilled, schedules are honoured , positive image is

built and a sense of pride develops in the minds of all concerned. There are certain requisites of factors which contribute to effective administration. These are: i) Knowledge Inputs (Provide) ii) Leadership skill iii) Communication skill iv) Technical skill v) Skill in Methods of Improvement vi) Human Relations Skill vii) Public relations and Image Building viii) Development of systems and routines ix) Safeguarding the Assets of the Establishment x) Arrangement of and Control over stationery and forms xi) Management of equipment and machine xii) Management of Personnel xiii) Impartiality xiv)Practice of Participative Management xv) Proper Instruction and Enforcement of Rules and Regulations xvi)Result Orientedness and Avoid waste. xvii) Development of capable workforce.

Principles of Administration Principles which serve as certain criteria in the administrative and management process, Henri Fayol has identified fourteen such principles and these are: i) Division of work ii) Authority, responsibility and accountability iii) Discipline iv) Unity of command v) Unity of Direction vi) Subordination of individual interest to organizational interest vii) Remuneration of personnel viii) Centralization ix) Hierarchy or scalar chain of command x) Order xi) Equity xii) Stability of tenure of personnel xiii) Initiative xiv)Esprit de corps

Theories of Administration : Abraham needs ) Maslow 1940( hierarchy of

Higher

Self Actualization needs

Self esteem needs Social needs Medium Security / safety needs lower ( Survival needs) Physiological needs

1.Physiological needs : includes the basic things necessary for human survival, once these satisfied individual no longer strives hard to obtain these and he himself is motivated to work hard for organization 2.Security needs include job security or safety and the work place, thus giving

psychological security to human beings. Once safety and security is ensured , they no longer motivate the human being. 3.Social needs : represent the relationship between and among groups of people working in the organization. This need provides emotional security to people and also gives a sense of belongingness and association. 4.Esteem needs represent higher level needs of human beings. At this level , they strive for power, achievement and status. 5. Self actualization is a higher level need represents culmination of all other needs. The fulfillment of this need gives a higher degree of satisfaction to individual in work and life. Physiological needs of the employees are met in the form of salary and other amenities He expects satisfactory safety and security needs. Here the management of the organization can provide proper safety according to their placement or positions and nature of work and also job security is must for all employees in the far fixing tenure of employment. Human beings are social beings which includes employees , acceptance in the organization.

The fulfillment of esteem needs gives selfconfidence to people and prepares them to take up leadership positions, guidance to others and appraising the performance of others. It improves the persons performance in the organization. A self- actualized person has fulfilled all his potential. It is the responsibility of the administration, to fulfill the needs of its employees. Henri Fayol (1841- 1925) Henri Fayol was born in France, educated as an Engineer at the National School of Mines, and employed as Mining Engineer and then as General Manager of a coal and steel company. He divided all activities in an organization into following sic groups i.e. technical, commercial, financial , security, accounting and administrative. Fayol broke down the key function of administration into five main aspects; to plan, to organize, to command , to co-ordinate and to control. Fayols experience as famous French industrialist led him to develop the following propounded fourteen principles of administration:

1. Division of work: There should be division of work and task specialization than

different workers consistently carrying out different job responsibilities. 2. Authority : Each worker should be given authority to commensurate with the amount of his responsibility. 3. Discipline : Each worker and management should maintain proper discipline, voluntarily according to their placement. 4. Unity of command : Each employee should receive orders from one supervisor only. 5. Unity of Direction : One person should direct all activities that support a single objective. 6. Subordination of individual interest to general interest: i.e. the interest of the individual work, should be subordinate to the interest of the total work group. 7. Remuneration : Proper remuneration which includes salaries, allowance and other incentives to be given to all employees according to their level of performance and responsibility by the management or employee. 8. Centralization and decentralization :certain powers and functions reserved with top level authorities and other powers and functions are distributed to executives and co- executives and workers also to some extent. 9. Scalar chain : There should be an unbroken scalar chain / hierarchy of authority extending from the top executives and workers also to some extent. 10. Order : There should be proper policies, rules and

regulations to maintain an orderly situation in the organization . 11. Equity: All employees should be treated with equity and justice. 12. Stability and tenure there should be prescribed tenure which is needed for all employees. 13. Initiative all employees and management should take proper initiation to achieve the objectives of the organization. 14. Esprit de corps : The group spirit and group morale can be cultivated among employees and employer to accomplish objectives. Luther Gulick Luther Gulick a classicist was influenced by Taylor and Fayol. He used Fayols five elements of administration viz. Planning , organizing, command, co-ordination and control as a frames work for his neutral principles. Gulick condensed the duties of administration into a famous work for his acronymPODSCORB. 1.Planning 2.Organizing 3.Staffing 4.Directing 5.Coordinating 6.Reporting 7.Budgeting

Gulick was very much influenced by Fayols 14 basic elements of administration in expressing his principles of administration as follows: 1.Division of work or specialization 2.Bases of departmental organization 3.Co-ordination through hierarchy 4.Deliberate co-ordination 5.Coordination through committees 6.Decentralization 7.Unity of command 8.Staff and line 9.Delegation and 10. Span of control In assigning functions to groups of people, the division of work principle is homogenicity based on four factor (4 Ps of Gulick) well suit to nursing, i.e. the Purposes they serve (function), the process they use, the persons or things which they deal with (clientele ) and the place where they work. Lyndal Urwick Lyndal Urwick also one among classical theorist, attached more importance to the structure of organization than the role of the people in the organization. He stressed the importance of design in organization unless this factor isolated. He further considered lack of

design as illogical, cruel, wasteful and efficient. Urwick also concentrated his efforts on the discovery of principles and identified eight Principles of Administration applicable to all organizations as given below: 1.The Principle of Objective- that all organizations should be expression of a purpose. 2.The Principle of Correspondence- that authority and responsibility must be coequal. 3.The Principle of Responsibility That the responsibility of higher authorities for the work of subordinate is absolute. 4.The Scalar Principle That a pyramidical type of structure is built up in an organization. 5.The Principle of Span of control 6.The Principle of Specification- Limiting ones work to single function. 7.The Principle of Co-ordination 8.The Principle of Definition- Clear prescription of every duty.

Objectives of Management The main purpose of business is to earn reasonable profits for survival and growth in the competitive environment by providing want satisfying products to the customers. i) Efficient Use of Resources: Management seeks to obtain maximum output with minimum resources and efforts. ii) Satisfaction of Customers: The customers must be satisfied by offering them quality products and better service. iii) Adequate Return on Capital: Management must achieve a reasonable rate of return for the owners of the business. iv) Satisfied Workforce: Satisfied workers are cooperative and contribute to the goals of the organization. v) Good Working Condition: Management seeks to achieve a system to ensure fair wages for the work, security of employment and better working conditions for the workforce. vi) Good Relationship with Suppliers: Management seeks to achieve good relations with the supplies of raw materials and capital so as to continue in production. vii) Contribution to National Goals: The management must contribute to the national goals . It should use the judicious use of scarce resources of the country.

Distinction between Administration and Management Basis Administration Management 1. Meaning Administration is Management concerned with means getting the formulation the work done of objectives, through and plans and with others policies of the organization. 2. Nature Administration Management relates to the relates to decision execution of making . It is a decisions. It is thinking function a doing . function . 3. Scope It is concerned It is concerned with with determination of implementation major objectives of policies. and policies . Managers are Administrators concerned are basically mainly with concerned with organization planning and and direction control. of human resources. 4. Decision Administration Management Making determines what decides who is to be done and shall when it is to be implement the done. administrative decisions .

5. Direction It is concerned of Human with leading and Resources motivation of middle level executives. 6. Administration Environment has direct interaction with external environment of business and make strategic plans to deal effectively with the environmental forces. 7. Status Administration refers to higher levels of management 8. Usage of The term Term administration is often associated with government offices, public sector and nonbusiness organizations

It is concerned with leading and motivation of operative workforce for the execution of plans. Management is mainly concerned with internal forces, i.e., objectives, plans and policies of the organization.

Management is relevant at lower levels of management . The term Management is widely used in business organizations in the private sector.

Significance of Management : 1. Determination of Objectives : The objectives of any organization are determined by the management . They are put into writing and communicated to all employees in the organization. 2. Achievement of objectives : Management is an important force for the accomplishment of the objectives of any group. Efficient management provides leadership to the business and helps in achieving its objectives. 3. Efficient Use of Resources : The role of professional managers has increased these days. They can ensure the efficient use of various resources and increase the productivity of the enterprise. 4. Coordinated Human Efforts : Management provides leadership and guidance to the workers . It also motivates them with the help of various incentive schemes.

5. Meeting Challenges: Management is the brain of any enterprise. It helps in predicting what is going to happen I future which will influence the working of the enterprise. It also steps to ensure that the enterprise is able to meet the demands of changing environment. 6. Economic Development : According to Peter Drucker Management is the crucial factor in economic and social development. Herzbergs Two Factor Theory This theory was developed in 1959. This theory was formulated based on the realization that work motivation and job- satisfaction are two dimensions that influence the productivity of an employee. Herzberg stressed with adequate research that good working conditions, adequate salary , good physical facilities, good human relations, quality of supervision might contribute to job satisfaction of employees, which are hygiene factors. Whereas factors like recognition of work done, status, opportunities for growth, challenging task, play an important role in creating work motivation factors. House and Wigdor ranked these motivators as follows : i) Achievement ii) Recognition iii) Work itself iv) Responsibility v) Advancement vi) Policy and Administration

vii) Technical Supervision viii) Working Conditions ix) Interpersonal relations x) Salary

He argued that interpersonal relation between the Nurse and her supervisor plays an important role in work motivation influencing her job satisfaction. Some believe in using negative force by criticizing one before others, finding faults in his/ her work, humiliating in others presence, which will motivate the person to improve his/ her work for avoiding such unpleasant situations. Some managers believe in using positive force by appreciating an employees contribution , praising before others, encouraging which make the person to do even better to get more and more appreciation and recognition. In some situations , the managers are autocratic , meaning, demanding D as I say . Some may follow laissez faire style. Some may use participatory style by involving employees or subordinates in all the decision making. Nature and Process of Planning

Planning is the most basic of all management functions since it involves deciding of future course of action . Overview The most challenging and vital of the administrative functions , perhaps is planning, which encompasses all the remaining five functions. This is an intellectual process where you have to visualize and foresee a situation with its related activities prior to its taking place , anticipate its outcome, possible advantages and disadvantages based on the data available on prevailing resources, human, material and financial as well as other constraints. Definition of Planning Planning is the first function of administration and management , undertaken to fulfill the purpose for which an organization is established . It is a pivotal process in administration and management involving conceptual skills, skills of analytical and critical thinking , decision making and problem solving.. According to Killen , Planning is the process of deciding in advance what is to be done, who is to do it , how is to be done and when is to be done. In words of Koontz, ODonnel and Weihrich , Planning is an intellectually demanding process ,

it requires the conscious determination of courses of action and the basing of decisions and purpose, knowledge and considered estimates. Characteristics of Planning Characteristics of Planning which reflect the nature of the planning process, are: Primacy The prime function of administration is planning which provides the very basis for the organizational function as a whole as also for the other five functions of administration. Futuristic orientation Planning projects into the future , address itself to the futuristic needs and demands, looking ahead to make provisions for future development, for handling future events and situations. Pervasiveness Managers at all levels are involved with the planning function i.e. pervades all the levelsfrom the top first levels of management . Flexibility and Dynamism Planning is involved with ongoing assessment of the organizational goals and objectives, the direction the organization is giving and thereby changing its tenets as required.

 Unity of Purpose and Direction Planning always takes into consideration the organizational goals in their totality providing a common focus in planning of administrative and managerial actions, and thereby rendering unity of purpose and direction in the process. Nature of Planning The nature of planning can be highlighted by studying the following characteristics: 1. Planning is an intellectual activity: Planning involves vision and foresightedness to decide the things to be done in future. It bridges the gap between where we are and where we want to go. 2. Planning involves selection among alternatives. Planning is a choice activity . The planning process involves finding of alternatives and selection of the best alternative to achieve specified objectives . Thus, decision making is an integral part of planning. 3. Planning is forward looking : Planning means looking ahead . it is carried out to achieve some objectives in future. 4. Planning is related to objectives . Every plan specifies the objectives to be attained in the future and the steps necessary to reach them.

5. Planning is the most basic of all management functions . Since managerial operations in organizing staffing, leading and controlling are designed to support the accomplishment of enterprise objectives, planning logically precedes the execution of all other managerial functions. 6. Planning is a pervasive function of management . Planning is a function of all managers, although the character and breadth of planning will vary with their authority and with the nature of policies and plans outlined by their superiors. Benefits of Planning Effective planning can result in the following advantages : i) ii) Focuses Attention on Objectives . Ensures Economical operation . Planning involves a lot of mental exercise which is directed towards achieving efficient operation in the enterprise.

iii) Reduces Uncertainty: Planning helps in reducing uncertainties of future because it involves anticipation of future events. iv) Facilitates Control :

v) Encourages Innovation and creativity : It helps innovative and creative thinking among the managers because many new ideas come to the mind of a manager when he is planning . It creates a forward looking attitude among the mangers. vi) Improves Motivation: Planning serves as a good training device for future managers. vii) Improves competitive Effective planning gives a edge to the enterprise enterprises that do not have have ineffective planning. strength : competitive over other planning or

viii) Achieves Better Coordination : Planning Is the conductor and band master of the orchestra of administrative functions, providing thereby the framework for giving direction to the different functions within the organization. Serves as an integral part of other administrative functions. Ensures order and control Avoids arbitrary decisions

 Provides flexibility and makes provision for future growth and development. Limitations of Planning i) Lack of reliable data . Planning loses its value if reliable information is not available or if the planner fails to utilize the reliable information.

ii) Lack of initiative . Planning is a forward looking process. iii) Costly process . Planning is consuming and expensive process. time

iv) Rigidity in organizational working . Internal inflexibility in the organization may compel the planners to make rigid plans. v) Non acceptability of change. vi) External limitations : Sudden breakout of war, government control, natural havocs and many other factors are beyond the control of management. This makes the execution of plans very difficult. vii) Psychological barriers. Principles of Planning

The important principles of planning are discussed below: 1. Principle of contribution to objectives: The purpose of plans and their components is to develop and facilitate the realization of organizational aims. 2. Principle of pervasiveness of planning . 3. Principle of limiting factors: Planning must take the limiting factors (manpower, money, machines, materials and management) into account by concentrating on them when developing alternative plans, strategies, policies, procedures and standards. 4. Principle of flexibility: Flexibility should be built into organization plans. The principle of flexibility states that management should be able to change and existing plan because of change in environment without undue cost or delay so that activities keep moving towards established goals. 5. Principle of Navigational change. It is the duty of the navigator to check constantly whether his ship is following the right direction in the vast ocean to reach the destination as scheduled. The navigator changes the path of the ship in case it is it is not going on the right path. In the same way, a manager should check his plans to ensure that these are progressing as required. He

should change the direction of his plans if he faces unexpected events. 6. Principle of Commitment . It suggests that the time period covered by planning should be related to the commitments of the organization. Kinds of Planning We can classify planning on the basis of the following dimensions: 1.Organizational Level : Corporate, divisional and functional planning. 2.Focus : Strategic , operational and tactical planning. 3.Time Period : Long- range , medium range and short range planning. Levels of Planning i) Corporate Planning (Top Level) : It usually covers a long period of five years or even more than this.

ii) Divisional Planning (Middle Level) : Divisional planning relates to a particular division or department . For instance , financial planning is the responsibility of finance manger and sales budget that of marketing manger. iii) Sectional Planning (Lower Level ) : Sectional or unit planning is highly

specific as it is done to achieve the divisional objectives.

Focus of Planning i) Strategic Planning . Strategic planning is the process of deciding the objectives of the organization and determining the manner in which the resources of the enterprise are to be deployed to realize the objectives in the uncertain environment . ii) Operational Planning . Operational planning is concerned with the efficient use of the resources already allotted and with the development of a control mechanism to ensure efficient operation so that organizational objectives are achieved. An operational plan (also called tactical planning ) involves laying down how resources of the organization will be used to help the firm achieve its objectives. iii) Tactical Planning : Tactical plans are made for short term moves and maneuvers necessary for supporting the strategic plans and achieving firms objectives. For instance, tactical plans may be made to handle a sudden fall in the demand of firms products of unexpected move by a competitor. Range or Time Span of Planning i) Long-range Planning . Long range planning is the process of establishing long-term

goals, working out strategies , policies and programmes to achieve these goals. It generally covers a period ranging from 5 years to 20 years or even more. ii) Intermediate or Medium range planning . Intermediate plans are made to support the long term plans. They may relate to development of new products and markets, product publicity, increasing return on investment from the existing products and markets. iii) Short range Planning . Short range planning relates to a period of upto one year, generally . Such plans are made to achieve shortterm goals. Steps in Planning Process 1) Establishing Objectives . Objectives provide direction to various activities in the enterprise. 2) Collection and Forecasting of Information : The collection and forecasting of information should be done in terms of external and internal environment . The assessment of external environment should include consideration of competition now and in the future. The assessment of internal environment may consider the strong and weak points of the organization . Collection of information and making forecasts serve as an important basis of planning.

3) Development of Planning Premises : This step involves making assumptions concerning the behaviour of internal and external factors mentioned in the second step . 4) Search of Alternatives: Usually, there are several alternatives for any plan. 5) Evaluation of Alternatives : 6) Selection of Plan and Development of Derivative Plans. Establishment of Objectives (Forecasting demand competition, government policy , etc. Planning Premises

Appraisal of Plans

Developing Alternatives Selection Evaluation of Best of Alternative Alternatives

Formulation pf Derivative Plans (Objectives, Policies Procedures, Methods, Rules, etc.

Fig. Steps in Planning Essential Requirements of an Effective Plan 1. Should be Specific 2. Should be Logical 3. Complete and Integrated 4. Flexible 5. Capable of being controlled

Nature and Process of Organization Organization is the backbone of management . A Carnagie, an American industrialist , Take away our factories, take away our trade , our avenues of transportation , our money . Leave nothing but our organization , and in four years we shall have re-established ourselves. Sound organization following advantages: brings about the

1. Facilitates attainment of the objectives of the enterprise 2. Optimum use of resources and new technological developments. 3. Growth and diversification 4. Stimulates creativity and innovation 5. Effectives communication 6. Encourages better relations between the labour and the management 7. Increase employees satisfaction and decreases employee turnover.

Definition 1. Sociologists organization means a study of the interactions of the people , classes , or the hierarchy of an enterprise ; 2. Psychologist, organization means an attempt to explain , predict and influence behaviour of individuals in an enterprise; 3. Top executive , it may mean the weaving together of functional components in the best possible combination so that an enterprise can achieve its goals. i) Organization as a group of persons ii) Organization as a structure of relationship iii) Organization as a function of management ; and iv) Organization as process 1. Organization as a group of Persons Barnard defined organization as an identifiable group of people contributing their efforts towards the attainment of goals. 2. Organization Relationships as a Structure of

Organization is no more than the framework within which the responsibilities of management of an enterprise are discharged. 3. Organization as Function of Management

Thus, organization is a process of integrating and coordinating the efforts of human , financial technological and other resources for the accomplishment of certain objectives. 4. Organization as a process Organization involves identification and grouping the activities to be performed and dividing them among the individuals and creating authority and responsibility relationships among them for the accomplishment of organizational objectives.

Steps in Organizing Organizing involves the following interrelated steps : i) ii) iii) iv) Determination of objectives Identification and grouping of activities Assignment of Duties Developing Authority- Responsibility Relationships

Nature of Organization 1) An organization connotes group of persons 2) Communication is the nervous system of organization 3) Organizing is a basic function of management

4) Organizing is a continuous process 5) Organizing is always related to certain objectives 6) Organization connotes a structure of relationships. 7) Organization involves a network of authority and responsibility relationships. Significance of Organisation structure contributes in the following ways. 1.Clear-cut Authority Relationships 2.Pattern of communication 3.Location of Decision centers. 4.Proper Balancing 5.Stimulating creativity 6.Encouraging growth 7.Making Use of Technological Improvements. Principles of Organisation 1.Consideration of Objectives 2.Division of Work and Specialization 3.Definition of Jobs 4.Separation of Line and staff Functions 5.Chain of command 6.Parity of Authority and Responsibility 7.Unity of command 8.Exceptional Matters 9.Span of supervision 10. Balancing of Various factors 11. Communication 12. Flexibility

13.

Continuity

Direction According to Dale, Direction is telling people what to do and seeing that they do it to the best of their ability. It includes making assignments, explaining procedures, seeing that mistakes are corrected , providing on the job instructions, and, of course, issuing orders. Directing is the interpersonal aspect of management process by which organizational members are led to understand and contribute effectively and efficiently to the accomplishment of organizational objectives. 4. Elements of Direction i) Issuing of orders that are clear, complete and within the capabilities of subordinates to accomplish; ii) Continuous training activity in which subordinates are instructed to carry out the particular assignment in the existing situation;

iii) Motivation of subordinates to try to meet the expectations of the manager; and iv) Maintaining discipline and rewarding those who perform properly. Features of Direction 1. Managerial Function : Direction is an important function of management . A good plan may have been chalked out, to direct the people in the use of planning and organization. 2. Continuous Activity : Direction is a continuous activity . It does not stop so long as the execution of plans is in process. 3. Pervasive Function : Like other functions of management , direction is also performed by the managers at all levels. 4. Communication : Giving of instructions and orders is an indispensable part of direction . Managers may elicit two types of behavior from the subordinates when they issue orders, viz., linear and circular. Linear behaviour is obtained when there is one-way transmission of orders from superior to subordinates, incase of circular behaviour , there is full scope for the subordinates to convey their feelings upward. Principles of Direction 1.Principle of Harmony of Objectives

Every individual is assigned a particular task which he is responsible to accomplish. 2. Principle of Maximum Individual Contribution : Direction should be such which inspires the people to contribute fully for the well being of the organization. 3. Principle of Unity of Command : This principle is not only important in organization but also in direction . It states that a subordinate should get orders and instructions from one boss only. 4. Principle of Direct Supervision : Direct supervision by the boss and his direct advice to the subordinates boosts their morale resulting into renewed and vigorous effort . This also increases loyalty among the subordinates which is better for direction. 5. Principle of Effective Communication : A good system of communication between the boss and his subordinates is better for coordination. Effective communication is an instrument of effective direction. 6. Principles of effective Leadership : Subordinates are happy if they get effective leadership from their boss. The boss must possess the qualities of a good leader if he is to get the work done from the workers. As a leader, the boss should guide and counsel the workers not only on the work problems but also the personal problems of the subordinates. Coordination

The basic function of coordination in an enterprise is the same as that of an orchestra conductor who directs the activities of the orchestra party in such a manner that it produces harmony in music. Coordination has been viewed by different management experts in different ways. HenriFayol considers coordination as a Function of a Manager. James D. Mooney considers coordination as the first principle of organization . Ralph C. Davis looks upon coordination primarily as a vital phase of controlling. In short , it is the essence of management. Definition of Coordination Coordination is the orderly synchronization of efforts of the subordinates to provide the proper amount, timing and quality of execution so that their united efforts lead to the stated objective. In the words of Mooney and Railey, Coordination is the orderly arrangement of group efforts to provide unity of action in the pursuit of a common purpose. Objectives of Coordination i) Reconciliation of Goals. This can be done by coordination only. The conflict of goals arises because everybody perceives the

organizational goals differently and tries to achieve them in his own way. ii) Total Accomplishment . It has been observed that the total accomplishment of ten employees of a department whose efforts are properly coordinated will be far greater than the mathematical sum of their individual accomplishment. This happens because through coordination, duplication of efforts is prevented and the time and energy thus saved are better utilized in more creative tasks. iii) Economy and Efficiency . Coordination will avoid duplication of efforts due to which there will be economy in labour, time and equipment . When the activities are properly integrated, there will be least delays which bring efficiency in the business organization. iv) Good Personnel Relations : Good coordination gives job satisfaction to the employees which keeps their morale high . moreover, there are good human relations because the authority- responsibility relationship are clear. v) Retention of Managerial and other Personnel : It has been pointed out that sound coordination has a significant effect on the development

and retention of good personnel in business. Types of Coordination Coordination can be classified into two broad categories , one on the basis of its shape in the organization and the other on the basis of its scope and coverage . On the former basis, it can be classified into vertical and horizontal coordination; and on the latter basis, into internal and external coordination. 1. Vertical and Horizontal Coordination : The term vertical coordination is used when coordination is to be achieved between various links or different levels of the organization . The term horizontal coordination is used when coordination has to be achieved between departments on the same level in the managerial hierarchy . 2. Internal and External Coordination . Coordination may be internal and external to the organization . Coordination is internal when it is achieved between different departments, sections and units of an enterprise. External coordination also involves interaction with other business, economic and research institutions to have the benefits of latest information and technological advances. Techniques of Effective Coordination or Steps to achieve effective coordination i) Clearly defined goals

ii) Clear lines of authority and responsibility iii) Precise and comprehensive programmes and policies. iv) Cooperation v) Effective communication. vi) Effective leadership and supervision Principles of Coordination : According to Mary Parker i) Principle of Direct Contact . The activities of different individuals can be coordinated effectively through direct personal contacts. This helps in exchanging the opinions and ideas in a better way and clarifying the misunderstandings more easily. ii) Principle of Early Start . Coordination can be achieved easily during the early stages of planning and policy making . It becomes difficult to secure coordination at the execution stage. iii) Principle of Reciprocal Relationship . For instance, when A works with B, each finds himself influenced by the other and both are influenced by the other persons and factors in the total situation. iv) Principle of Continuity . Coordination should be viewed as a never- ending process and every manager should strive for it constantly .

Some Important Measures: Which could help in brining this effective cooperation and in turn coordination, are: To have direct contact with people To begin this actively at a very early stage To maintain continuity in this activity To be clear and make the objectives clear to the subordinates To work out clear delineation of authority To simplify the procedures in the organization To maintain effective communication style and motivate others to develop a sense of involvement. To provide effective leadership and supervision. Control Control is an important function of management . It is the process that measures current performance and guides it towards some predetermined objectives. Definition of Control Control is a basic managerial function which implies measurement and correction of performance of subordinates to ensure that the predetermined objectives are accomplished. According to Koontz and Weihrich , The managerial function of controlling is the measurement and correction of the performance

in order to make sure that enterprise objectives and the plans devised to attain them are accomplished . Characteristics of Control 1. Pervasive Function: Managers at all levels have to perform this function to contribute to the achievement of organizational objectives. 2. Review of Past Events : This is also known as feedback information 3. Forward Looking : 4. Action Oriented : 5. Continues Process : 6. Dynamic Process : Control is a dynamic process. It is flexible and not rigid. 7. Control does not curtail the rights of individuals : to some people control is opposite of freedom . It is not so. It is preventive action so that losses may be avoided in future.

Significance of Controlling 1.Coordination 2.Corrective Action

3.Decision making 4.Better Planning 5.Decentralization of Authority 6.Effective Supervision Principles or Requirements of A Good Control System. 1. Emphasis on Objectives : The control system must be directed towards the potential or actual deviation from plans early enough to permit effective corrective action. 2. Efficiency of control Techniques : Control techniques and approaches are efficient when they detect deviations from plans and make possible corrective action with the minimum of unsought consequences. 3. Responsibility for Control : Should rest in the manager 4. Direct Control : Any control system should be designed to maintain direct contact between the controller and controlled. 5. Suitability : Controls should be tailored to fit the needs of the organization 6. Flexibility : A good control system must keep pace with the continuously changing pattern of a dynamic business world. It must be responsive to changing conditions. 7. Self- Control : Units may be planned to control themselves . If a department can have its own goals and control system, much of the detailed controls can be handled within the department. 8. Control by Exception : This is also known as management by exception . According

to this principle , only significant deviations from standards, whether positive or negative, require managements attention as they constitute exceptions. 9.Strategic Point Control 10. Corrective Action : Merely pointing of deviations is not sufficient in a good control system. 11. Forward looking Control : The control system should be directed towards future. It should report all the deviations from the standards quickly in order to safeguard the future. 12. Human Factor : A good system of control should find the persons accountable for results, whenever large deviations take place. They must be guided and directed, if necessary. 13. Economical: The systems of control must be worth their costs. They must justify the expenses involved. 14. Objective Standards : As far as possible , standards should be objective. If they are subjective, a managers or a subordinates personality may influence judgments of performance. Relationship between Coordination : Control and

Control and coordination are twins of Management. Control and coordination are closely related in many ways. Firstly , authority is the basis of both the process. Secondly , both are performed by the managers at all levels. Thirdly , both are

aimed at achieving organizational goals. Fourthly , both are necessary for achieving stability , continuity and growth of the organization and consistency , precision and discipline concepts in the sense that seek to relate organizational means with organizational ends or goals. They strive to maintain organizations as rational systems, relatively free from conflict, confusion and chaos. Significance of Controlling 1.Coordination 2.Corrective Action : taking corrective action may lead to modification of planning, organizing , and directing . Control will also check the mistakes being repeated in future. 3.Decision Making : The process of control is complete when corrective actions are taken. This involves making a right decision as to what type of follow up action is to be taken. 4.Better Planning : control is the only means to ensure that the plans are being implemented in the real sense . It points out the shortcomings of planning by comparing the actual performance with the planned standards AND suggests steps to improve planning. 5.Decentralization of Authority 6.Effective Supervision : Control facilitates effective supervision by pointing out significant deviations . It keeps the subordinates under check and brings discipline among them.